Cross-Asset Investors See Asia Stocks Beating Junk Bonds in 2021

Bloomberg Quint | Dec 5, 2020 at 6:30 AM
  • Asian equities are set to have a brighter 2021 than the region’s high-yield bonds, as everything from a global rotation to value and efforts to tackle climate change improve opportunities in stocks, some multi-asset investors say.
  • Stocks and junk bonds have been touted as among the most lucrative asset classes in Asia this year as investors chased returns amid the pandemic, but heading into next year, equities seem to be gaining more prominence.
  • Amundi Asset Management expects a rotation out of high-yield credit to stocks, citing a phase of mild recovery and earnings re-acceleration in 2021 that will ensure a better risk-return profile for stocks.