Record Asia Junk Bond Rally Has Investors Betting on More (1)

Asia high-yield dollar bonds have climbed for a record 16 straight weeks, and investors such as BlackRock Inc. and UOB Asset Management Ltd. think the rally has legs thanks to the region’s economic outlook and relatively cheap valuations.

While China investors and analysts are still cautious after more than $130 billion of defaults by property developers, BlackRock says an eventual interest-rate pivot by the Federal Reserve will benefit companies in the region and keep a lid on defaults. Spreads on Asia’s junk debt are more attractive than their US peers, giving room for outperformance, according to BEA Union Investment Management ...