Pimco Says Top-Rated Emerging Asia Junk Debt Offers Best Return

Higher-rated junk bonds in Asian countries where infrastructure spending is fueling growth, such as Indonesia, should offer the best returns in 2011, according to Pacific Investment Management Co.

With Asia’s emerging economies forecast to grow quicker than its developed nations, “while you may be constructive on a region or country, individual credit assessment is crucial,” Lian Chia-Liang, head of emerging Asia portfolio management for Pimco, manager of the world’s biggest bond fund, said in an interview in Singapore. “Ideally we like to invest in markets which reside in a neighborhood of growth.”