Major bond selloff unlikely: Fidelity

Singapore

THE recovery in the US is a positive for the world, though market uncertainties over the coming interest rate hike will cast a pall over Asia, said Andrew Wells, global chief investments officer for fixed income, solutions and real estate at fund house Fidelity.

Opportunities still exist in Asian high yield bonds where coupons are over 8 per cent, he said. Other assets that are attractive include European credits, due to the supportive central bank environment, and emerging market local currency bonds which have been badly hit, said Mr Wells, who was speaking to The Business Times on Friday.