Asian offshore bonds continue to provide unique credit stories, which are relatively immune to the recent ripples from the United States sub-prime mortgage crisis. But some bankers and fund managers say the supply of bond issues in the primary market may quieten down through the summer due to rising finance costs.
Despite the defensive sentiment brought by the expectation of mounting losses in home loan pools backing the US sub-prime mortgage securities, strong fundamentals in the Asian economies have given support to the bond market.
'The Asian bond market has been a bit more volatile recently, but it's more stable compared to the markets in the US and Europe. The liquidity remains strong in the market,' said Stephen Chang, who helps manage US$4billion of fixed-income securities at JF Asset Management in Hong Kong.
'Asia's credit spread is relatively immune to the US sub-prime mortgage securities market-led widening.'
Unique market stories and new names coming to the market are still attractive for investors turning more selective, given strong fundamentals and health of the region's economy.
'For countries in the region, Indonesia is on our top list. The country is heading in the right direction,' said Mr Chang.