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Fund manager promotes high-yield debt, currencies

Date: 06 Feb 2010

Rajeev De Mello of Western Asset Management believes companies will take advantage of the fact that absolute yield levels in the high-yield debt market are very low. He also highlights opportunities with some Asian currencies.

Keywords (click to search): [Rajeev De Mello] [Western Asset Management] [renminbi] [rupee] [won]

Pamela Tang
As markets move away from the high levels of volatility seen in 2009, high-yield bonds and a number of Asian currencies offer opportunities, says a senior portfolio manager.

Last year’s volatility provided unprecedented challenges for investors, but it also offered what some saw as the opportunities of a life-time.

As markets normalise this year and yields contract, investors will have to be more discerning about where they put their money.

One area they might consider is high-yield bonds, Rajeev De Mello, head of Asian investment at Western Asset Management in Singapore, told asiamoney.com.

This segment of the debt market had been closed for much of 2009, and only reopened in the latter half of the year. According to data provider Dealogic, there have been three G3-currency denominated transactions in Asia ex-Japan, worth US$1.3 billion this year.

“I think the high-yield market is definitely open and companies...

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