Asian Junk Bonds Offer Most Yield Over U.S. in Nearly a Decade
Finbarr Flynn, Bloomberg News
BC-Asian-Junk-Bonds-Offer-Most-Yield-Over-US-in-Nearly-a-Decade
, Finbarr Flynn
(Bloomberg) -- Asian junk bonds are attracting more bullish calls from money managers willing to navigate risks in the region for the juiciest yield pick-up over U.S. peers in nearly a decade.
The yield gap on speculative-grade dollar bonds from Asia over similar securities from U.S. borrowers has widened to about 295 basis points. That puts the premium closer to the 324 basis points touched in November that was the highest since 2011.
Strategists at UBS Group AG have said that junk debt from Asia is the best global credit opportunity in 2021. Analysts from Goldman Sachs Group Inc. have forecast that Asian high-yield notes may return 5.5% this year.