Investment in Asia corporate perps warrants caution, says Fidelity

22 Apr 2012

Investors are advised to scan the fine prints of an Asian corporate perpetual bond as the level of covenants could differ from one instrument to the next, even when issued by the same credit, says the fund manager.

Asian corporate perpetuals which are much less rated than their European peers warrant a cautious approach from investors. The covenant spectrum could vary from one instrument to another, despite being issued by the same institution.

Perpetual bonds – which are considered hybrid securities – provide investors with debt-like returns, ...

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