Asian bond market fundamentals "compelling" -State Street

HONG KONG, March 19 (BestGrowthStock) – There is a large structural
shift in capital flows to Asian bond markets from Europe and the
United States as investors warm up to the region’s strong growth
prospects, State Street Global Advisors said.

Fiscal problems in the eurozone economy and smaller public
debt to GDP ratios in Asia compared to Western counterparts made
them more attractive, Bill Street, managing director and head of
international alpha strategies told reporters on Friday.

“In Asia, I think government bonds offer good value on the
caveat that some look a bit rich,’ Street said during a visit to
Hong Kong.

SSgA is the investment management arm of State Street Corp
(STT.N: ), the world’s second-biggest money manager with $1.9
trillion in assets under management.

“The reason is that they are underpinned by strong
fundamentals while there is a lot of concern and lot of risk
premium in the Europoean bond markets,” he said.

In 2010, the Boston-based firm estimates government debt as a
percentage of GDP at 4.4 percent for the region compared to 12.2
for the U.K., 11.4 percent for the United States and 6.6 percent
for the eurozone.

On Greece, he said the debt crisis would likely be resolved
in a few weeks, which would lead to a sharp tightening in spreads
and called its threat to go the IMF “brinkmanship”.

Athens raised the stakes in its quest for EU help on Thursday
to tackle its debt crisis, saying it could not achieve promised
deficit cuts if its borrowing costs remained high and may have to
call in the IMF. [ID:nLDE62H0LL]

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Asian bond market fundamentals “compelling” -State Street