Investing in Asia’s credit sector is far from simple these days.
-Robert Mead, managing director, PIMCO
-Raja Mukherji, executive vice president, PIMCO
- Our cyclical economic outlook for Asia in 2013 is unusually dependent on breakthroughs in structural policies.
- Although we continue to favor select opportunities in key sectors, in general Asian credit spreads are trading historically tight.
- Bottom-up research is critical, along with careful top-down views on shifting economic conditions, and investors need adequate compensation for taking credit risk. Some sectors and companies can grow significantly faster than their respective economies.