Junk Bonds From Asia Beat Most Everything Else: Credit Weekly

Money managers including T. Rowe Price Group Inc. believe Asian junk dollar bonds have further to run after outperforming almost everything else in debt markets this year.

The notes have returned 9.8% year-to-date compared with about 3% for global speculative peers and losses across much of high-grade debt this year, Bloomberg indexes show. The outperformance is driven in part by a rebound in Chinese junk debt from record lows as authorities in Beijing throw their weight behind steps to pull the nation’s property market out of an unprecedented slump.

Junk bonds around the globe have been outperforming better-rated peers for ...