Video

Playlist: Corporate Credit Ratings

Show less
Video / 31 March 2015 at 8:04 GMT

Boye: Western investors and the hunt for Asian corporate bonds

Marie-Louise Møller
Low yields in Europe are likely to send fixed income investors hunting for yields in Asia. Saxo Bank Fixed Income trader Michael Boye is targeting two corporate bonds, which he thinks offer worthwhile yields: Delhi International Airport and Country Garden Holdings.

Michael Boye says continued economic growth in Asia supports the case for investing in Asian corporate bonds. He highlights the first bond issued by Delhi International Airport. Even though the bond was oversubscribed 17 times, it offers a yield of around 5.2%, and trades at a price of around USD 105.25. The price of the bond has been pushed up because of the airport’s exposure to India’s growing economy, demographics and plans to expand the airport.

China may be seeing a slowdown at the moment, but with the People’s Bank of China saying it is willing to act on rates and introducing measures to boost growth, there's interest in Chinese corporate bonds. This makes investing in real estate bonds particular interesting as the sector would benefit from further monetary easing, says Michael Boye. Particularly interesting is Country Garden Holding’s 5-year USD bond, issued in March, which has a price of around 100.75 and yield of 7.3%

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail