HSBC Global Asset Management said although the coronavirus has hit the global economy, the default situation of Asian high-yield bonds is much better than that of the United States. Alfred Mui, head of Asian Credit at HSBC Global Asset Management expects the default rate will rise to 4 percent from 1.6 percent, which is a controllable situation. Mui said mainland developers issued the largest amount of bonds in the US dollar in the Asian bond market. Cecilia Chan, chief investment officer of Fixed Income, Asia-Pacific HSBC Global Asset Management, said negative interest rates in the US will not be sustained. She believes the low-interest rate will be maintained until next year, and it will beneficial to bond investment.

Source: The Standard May 11, 2020 08:15 UTC