Asian Junk-Bond Yield Nears Lowest as Investors Look Past

Asia’s riskiest bond issuers are getting the lowest borrowing costs of the year as investors speculate central banks will help them overcome default concerns flagged by Kaisa Group Holdings Ltd.

Yields on dollar-denominated Asian sub-investment grade notes plunged 220 basis points to 7.58 percent as of May 11 from the January peak of 9.78 percent, according to a Bank of America Merrill Lynch index. That’s near the year’s low of 7.52 percent marked on April 30.