East Asia Lianfeng: US economy only increased by 2% this year
Zeng Qianwen, head of the fixed-rate investment department of East Asia Lianfeng Investment, expects that the US will have little chance of recession this year and next. Although its economic pace has slowed down, it is predicted that there will still be a growth of about 2% this year. The Fed’s monetary policy is continuing to normalize instead of Obviously tightening, it is expected to raise interest rates once or twice this year. The Asian bond market has already reflected the relevant expectations. At present, the Asian bond default rate is still low and the valuation is attractive.
Lu Suixin, managing director of the company’s business development department, pointed out that many people in the market recently look for low-risk investments with the concept of capital preservation, with the goal of returning investment products that are linked to interest and have relatively short maturities.
Regarding the slowdown in the US interest rate hike, will it affect the performance of the bond funds? Zeng Qianwen said that LIBOR is expected to rise to 3.1%, and the US will raise interest rates one or two times this year. Lu Suixin believes that the interest rate is greatly reduced.
East Asia Lianfeng launched a Asian bond target year fund that is linked to the US dollar London Interbank Offered Rate (LIBOR), with a target return of 3 months LIBOR plus 1.4%. The investment period of the fund is from 3 years to the end of January 2022. It is intended to distribute 12 quarterly dividends and return the principal on the maturity date. Regarding the subscription date of the bond fund until the 18th of this month, the minimum investment amount is 50,000 US dollars, the Hong Kong dollar category is 400,000 Hong Kong dollars, and the RMB category is equivalent to 50,000 US dollars. The fund management fee is 0.6% per annum, the subscription fee is up to 3%, the maturity is redeemed early, and the early redemption fee is 1.5%. The investment includes Asian bonds from mainland enterprises, Chinese financial bonds and high-interest bonds in China.
Domestic debt remains attractive
Zeng Qianwen said frankly that we should pay attention to market volatility and corporate default risk. However, the overall default rate of mainland bonds last year was less than 1%. Excluding state-owned enterprises, the default rate of private enterprise bonds was about 8%, and the overall Asian offshore dollar bond default rate was 2%.
She added that the company will pay special attention to the credit quality of the company when investing. It is expected that the US dollar will be stable. The depreciation of the RMB this year is not large. The mainland stimulus measures such as RRR cuts and some areas have tightened the control measures for real estate, and the domestic debt remains attractive. Force, but it is not appropriate to touch the Chinese industrial company bonds.