Asia’s local government bond markets attracted record inflows in 2010, driven by the region’s relatively stronger economic outlook, credit fundamentals and higher yields. Martin Hohensee, head of Asia fixed-income and credit research at Deutsche Bank, gives FinanceAsia his thoughts on whether this theme will continue into 2011, along with his broader outlook for fixed income in Asia.
Capital flows into Asia and emerging markets in general was the major theme of 2010. Do you expect this to continue in 2011
In 2010 the familiar capital pull-themes of “increasing emergingAsia allocation” and “reserve diversification” got a significant boost from the realisation of systemic risks in the US and Europe. The resulting capital-push could...