Asian Dollar Bonds Could Yield Decent Return In 2017: UBS

Amidst a low-rates environment and being a more stable part of global EM, one can expect Asian dollar bonds to still offer a decent return during the current year, according to UBS. Anna Ho and team said in their January 3 research note titled “The Asia Credit Analyzer” that they anticipate that the level of construction activities and infrastructure build uplift will sustain commodity demand in China into 2017.

Total return for Asian dollar bonds could touch 4.67%

Ho and colleagues point out that last year, the yield and credit curves for Asian dollar bond prices steepened along with rising UST yields, with the market adjusting to the developments on a new U.S. administration front. The analysts note that Asian dollar bonds gave back...