Overview:
- Asia-Pacific companies and non-federal issuers are selling local-currency bonds at a record-setting pace, with sales reaching an astounding $1.5 trillion this year, marking a 6% increase.
- This significant surge in bond sales is fundamentally driven by a growing trend among global investors to diversify their portfolios and move away from US dollar assets.
- Non-sovereign entities, including local/regional governments and public agencies, are leading these substantial local-currency bond sales, indicating a broad shift in regional financing.
- The Deputy Chief Investment Officer at Fullerton Fund Management, Angus Hui, expects this trend of diversification into broader Asian local currency markets to accelerate.
- This notable activity highlights a major rebalancing in global investment strategies, with capital increasingly flowing toward regional assets and away from US dollar dominance.
Asia-Pacific companies and non-federal issuers are selling local-currency bonds at a record pace. This year, they have sold an astounding $1.5 trillion in bonds, representing a 6% increase.
This significant activity stems from investors’ growing desire to move away from US dollar assets. Non-sovereign issuers, including local and regional governments and public agencies, are leading these substantial sales.
Angus Hui, Deputy Chief Investment Officer at Fullerton Fund Management, believes this trend will persist. He stated, “Diversification into broader Asian local currency markets is likely to accelerate”. This highlights a notable rebalancing in global investment strategies.
Guest Ideas
Angus Hui
Deputy Chief Investment Officer
Fullerton Fund Management
Angus Hui serves as Deputy Chief Investment Officer and Head of Fixed Income at Fullerton Fund Management, roles he has held since April 2023. His extensive career spans over two decades in fixed income, primarily focused on Asian credits and emerging markets. Prior to Fullerton, Hui spent nearly 22 years at Schroders, where he advanced to Head of Credits, Asia. He also gained experience at HSBC and Standard & Poor’s. Hui holds Master and Bachelor of Commerce degrees from the University of Melbourne and an EMBA from The Chinese University of Hong Kong. He is also a Chartered Financial Analyst.
More stories: Standard Chartered champions secure AI-Powered advancement