Goldman Asset Sees ‘Attractive’ Returns for Asia Junk Bonds
- Asia junk bonds offer a premium as U.S. yields hit record low
- GSAM says market ‘too pessimistic’ about defaults in Asia
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Goldman Sachs Asset Management sees an opportunity in Asia’s junk dollar bonds, which lag the U.S. despite a recent rally.
Investors are pouring money into riskier debt globally, after the U.S. election fueled expectations for a split government that would keep yields low longer and following progress toward a Covid-19 vaccine. Yields on Asian speculative-grade notes dropped for seven straight days through Tuesday but are only at the lowest in about a month, while those on U.S. peers have slid to a record low.