Institutional funds “have little choice but to turn to equities,” Hou wrote. “As the trend of ever-lowering bond yields continues on the back of a renewed cycle of policy easing by global central banks, other higher-yielding asset classes have risen to be the next ‘bond proxies.’”
(Oct 4): Stocks still look particularly attractive in a world of ultra-low bond yields, according to Southeast Asia’s largest bank DBS Group Holdings.
Equities are a better risk-reward play than bonds, which are looking expensive after this year’s big rally, Chief Investment Officer Hou Wey Fook wrote in his fourth-quarter asset allocation report. He recommends dividend shares and gold as well as hybrid European AT1 securities.
