The discrepancy between Asian bond valuations and fundamentals

Credit ratings have been improving across Asia, but spreads persist which could partly be down to Western investors' unfamiliarity with the markets.

An important part of the management of diversified multi-asset portfolios is the continual search for alternative asset classes and long-term opportunities. One such example is the financial crisis in Asia the late 1990s which proved to be a real catalyst for positive change for the local bond markets. Governments across the region realised they needed to develop these markets to provide localised sources of funding to serve domestic business needs. The Asian Bond Market Initiative, the ASEAN+3 Bond Market Forum in 2008, and the Credit Guarantee and Investment Facility in 2010 are all im...