Asia
The past 12 months have proved to be Asia’s best ever in the bond markets, with record issuance and all-time low spreads. A potent cocktail of historically low interest rates, a strong cyclical economic recovery and markets drenched in local and overseas liquidity made for quite a party. One of the favourite party games of international investors was the carry trade ? borrowing cheap dollars and investing them overseas in higher-yielding investments ? and Asia’s bond markets have been one of the favoured venues.
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