In these troubled times, every investor needs a good hedge against financial uncertainty in their portfolio. While such bulwarks are typically sought in Developed Market government bonds, a team of DBS strategists led by Eugene Leow are placing their bets on Beijing.
“It is high time to recognise that China government bonds (CGB) are a viable alternative to other DM govvies,” they declare bullishly, citing their potential as a hedging asset in an Oct 12 broker’s report. Hedges offsetting losses made in investment positions when prices fall, reducing the overall risk of an investor’s portfolio.
