High yield bond funds

“Low and falling government bonds yields can trigger a rush to add risk in order to lock in a higher level of yield. This is not bad in itself – as investors, we are paid a return in order for taking on a risk. However, not all risks are the same and some inevitably turn out to be landmines, especially when the economic cycle comes to an end,” noted Manpreet Gill, head of fixed income, currency, and commodity strategy at Standard Chartered Bank. … [Read more...] about Corporate bond activity welcome as market shocks persist unabated

Most corporate bonds are issued by unlisted companies, with an average coupon rate of 10 per cent over the previous year, with some rates as high as 13 per cent. In 2019, real estate firms issued the largest share of bonds representing 37.2 per cent of issuance value, banks took second place with 22.8 per cent, and tourism/hospitality companies issued 16.6 per cent. As companies recover from the financial impacts of the COVID-19 pandemic, the issuance of corporate bonds is likely to continue rising as traditional credit growth slows. … [Read more...] about Government urges caution on corporate bond risks

Excluding bank bonds (which have low interest rates), the average interest rate in Q2 was 10.27 percent, nearly the same as the interest rate in H2 2019. This was attributed to the bank deposit interest rate reductions. Excluding bank bonds (which have low interest rates), the average interest rate in Q2 was 10.27 percent, nearly the same as the interest rate in H2 2019. This was attributed to the bank deposit interest rate reductions. … [Read more...] about Investors still pouring money into corporate bonds, despite warnings

Investors have been invited to contribute capital to real estate projects and enjoy a profit of 36 percent per annum, and have also been persuaded to buy corporate bonds at a high interest rate of 18 percent per annum.  One real estate firm in HCM City is offering a business cooperation model to develop guest houses for rent, under which VND40 million is contributed to own one room. … [Read more...] about Real estate firms offer sky-high profit rates to attract investors

For example, at the worst point in the COVID-19 crisis, foreigners were net selling Vietnamese stocks at the same time that local retail investors were aggressively buying. For that reason, the investors who generate alpha in the local stock market are generally those who have an understanding of its nuances and a deep competency in the financial analysis techniques. … [Read more...] about Continuing to lure in international funds