| Schroder Buys Asian Convertible Bonds as Regional Stocks Rally Schroder Investment Management Ltd. Schroder also bought convertible notes issued by Hong Kong developer Shui On Land Ltd. (272) in February, while scaling back bets on Singapore's real-estate market by selling Capitaland Ltd. The asset manager, which oversees $1 billion in Asian equity-linked notes, bought securities issued by Gome Electrical Appliances Holdings Ltd. (493) as Chinese policy makers took steps to boost home ownership, Singapore-based convertible analyst Dorian Carrell said in an interview. As for Hynix, it's a strong turnaround candidate, with stabilization in DRAM prices the key catalyst. 3 percent on hedged basis over the same period. Schroder manages Asian funds in a joint venture with Fisch Asset Management AG of Switzerland. 'Under-Appreciated' "We believe the market is under-appreciating the potential increase in earnings in China with one of the most attractive convertible structures in the Asian market," Carrell said. (6665) The Tokyo-based company, which had 12 percent of the DRAM market, filed for bankruptcy this week. Benchmark prices for the chips jumped 18 percent this week, after more than halving over the previous 12 months, data compiled by DRAMeXchange show. "The bankruptcy of Elpida has removed nearly 20 percent of global market supply," Carrell said. "This should drive up prices and improve Hynix's margins. 96 percent. 5 percent to investors this year, beating 54 percent of its peers, according to data compiled by Bloomberg. The fund's benchmark Asia ex-Japan Convertible Index, compiled by UBS AG, rose 6. "Gome is also delivering operational and margin improvements. " China aims to add 36 million units of affordable housing by 2015 to limit public discontent over property prices. Officials will increase support for construction of the homes and ensure that "loan demand from first-home families" is met, the People's Bank of China said on its website Feb. It also bought Hynix Semiconductor Inc. (000660) of South Korea , the world's second-largest chipmaker, and Taiwanese companies Pegatron Corp. (4938) and Wistron Corp. The rally is being underpinned by signs the U. Convertible bonds, which give holders the safety of coupon payments and the option to convert them into shares to participate in stock gains, are benefiting from a surge in the MSCI Asia-Pacific Index (MXAPJ) of shares outside Japan , up 15 percent this year. Scaling Back Singapore Gome's 3 percent bond due September 2014 has Schroder Buys Asian Convertible Bonds as Regional Stocks Rally |
Monday, 5 March 2012
Schroder Buys Asian Convertible Bonds as Regional Stocks Rally
