Asian bonds will remain top choice for investors

Ooi, who was recently in Brunei for the 9th Annual Brunei Darussalam Roundtable, organised by Asia Asset Management, said that while long-term bonds were not an easy thing to predict, based on the overall breadth and depth of the market, Asian bonds should increase.

“This means that there will be more liquidity, more players. The trend is in place and governments want to get it done,” he said, adding that some governments may do a better job than others, but the growth of issuances [of bonds] will continue. However, high savings rates and cash-rich companies pose a challenge, hindering the issuance of bonds, but nevertheless, we can expect a steady return in the coming days.

Ooi said that the Asian bond markets in Thailand and Malaysia still provide moderately high yields of between 3.5 and 4 per cent, which by global standards, he said, is still “quite attractive”.