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Why buy a Developed Market government bond when you can get a Chinese one instead?
Ng Qi Siang Published on Mon, Oct 12, 2020 / 4:14 PM GMT+8 / Updated 22 hours ago
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In these troubled times, every investor needs a good hedge against financial uncertainty in their portfolio. While such bulwarks are typically sought in Developed Market government bonds, a team of DBS strategists led by Eugene Leow are placing their bets on Beijing.
“It is high time to recognise that China government bonds (CGB) are a viable alternative to other DM govvies,” they declare bullishly, citing their potential as a hedging asset in an Oct 12 broker’s report. Hedges offsetting losses made in investment positions when prices fall, reducing the overall risk of an investor’s portfolio.
Ng Qi Siang Published on Mon, Oct 12, 2020 / 4:14 PM GMT+8 / Updated 22 hours ago
A-
A
A+
In these troubled times, every investor needs a good hedge against financial uncertainty in their portfolio. While such bulwarks are typically sought in Developed Market government bonds, a team of DBS strategists led by Eugene Leow are placing their bets on Beijing.
“It is high time to recognise that China government bonds (CGB) are a viable alternative to other DM govvies,” they declare bullishly, citing their potential as a hedging asset in an Oct 12 broker’s report. Hedges offsetting losses made in investment positions when prices fall, reducing the overall risk of an investor’s portfolio.
