Asia trip report: Distinctive super-long JGB investment by South Korean investors
Key points
We visited South Korea, Singapore, Malaysia, and Thailand from late April through early May; exchanged views on JGB market with local investors
Real money investors in South Korea buying super-long JGBs and boosting returns with long-term currency hedging; may have helped narrow 30s40s spread
In Malaysia, investors in early stages of resuming JGB investments as interest rates are higher than in Japan; in Thailand, where rates are low, investors already resuming JGB investment