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Asean Backing Junk Debt Lures Prudential: Southeast Asia

Southeast Asia’s first plan to back corporate bonds will lure pension funds seeking higher yields from investment-grade debt, according to Prudential Plc and PineBridge Investments LLC.

The AA+ rated Credit Guarantee & Investment Facility, formed by the Association of Southeast Asian Nations along with Japan, China and South Korea, began operations this month and will help sell two or three notes by Sept. 30, Chief Executive Officer Kiyoshi Nishimura said. That may include junk-rated debt to help attract new issuers, he said. PineBridge Investments’ Taiwan unit said it will consider buying such securities.