Rising US Treasury yields could cause another selloff in Asian fixed income markets, but Morgan Stanley sees opportunities in longer-duration investment grade credit.
Insurers in Asia are turning to higher yield and less liquid assets in order to enhance absolute returns, preparing for Fed tapering in 2014, according to a global insurance survey.
The Fed cannot create inflation as long as the postwar generation is paying off mortgages and emerging markets are struggling under huge external debts, says CLSA’s Russell Napier.
Markets have over-reacted to the taper and under-estimated the persistence of low inflation, says Ethan Harris, co-head of global economics at BofA Merrill.