Ask The Experts: Credit Spreads and Credit Markets Offer Better Value in Fixed Income
Tony Adams, Co-Head of Global Fixed Interest and Credit at First State Investments, shares his outlook for fixed income in 2012 and discusses where he sees the most opportunities for investors.
With interest rates at persistently low levels, how will this impact fixed income in 2012?
- Cautiously optimistic on fixed income outlook for 2012
- Negative impact should interest rates rise globally
- Credit spreads and credit markets offering attractive returns
Within fixed income, what are some of the factors that could support performance?
- Markets are currently priced for quite dire outcomes particularly for Europe
- Impact on export-driven economies also cause for concern
- Resolution in Europe will be catalyst for stronger performance
What are the risks fixed income investors should take note of?
- Immediate risks centre on Europe, especially Greece
- On a longer-term perspective, inflation risks will reduce real returns
With growing interest in the Asian fixed income space, what's the most/least attractive opportunity you see at the moment?
- Asian fixed income has performed well due to stronger balance sheets and strong economic growth
- Cautious on Korea due to supply risks
- Positive on state-owned enterprises in China and Hong Kong corporate
- Within Asian high-yields, preference for Chinese property and industrial companies
||: Ask The Experts: Credit Spreads and Credit Markets Offer Better Value in Fixed Income