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Strategists on investing in Asia junk bonds after Evergrande crisis

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High-rise apartment buildings at China Evergrande Group’s under-construction Riverside Palace development in Taicang, Jiangsu province, China, on Friday, Sept. 24, 2021.

Qilai Shen | Bloomberg | Getty Images

Asian high-yield bonds have been a hot favorite among institutional investors for the last few years.

Also known as junk bonds, they are non-investment grade debt securities that carry bigger default risks — and therefore, higher interest rates to compensate for them.

One recent high-profile example was the debt crisis at China’s Evergrande. Weighed under more than $300 billion of liabilities, the world’s most indebted property developer is teetering on the brink of collapse. Fears of a broader contagion to the industry, and perhaps even the economy, triggered a global sell-off in September.

Given the uncertainty of China’s junk bond market, CNBC asked five strategists and portfolio managers: Would you advise investors to buy Asia high-yield bonds?

To…

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