Asia’s credit market has grown massively, but if yield-seekers want a slice of that pie, they must be prepared to vary their investing strategies across the region, according to Singapore-based Ilfryn Carstairs, co-chief investment officer at Varde Partners, an alternative investment advisory.
“It’s difficult to talk about Asia as a single market,” Carstairs said.
“I think you have to break down to the different pieces and be able to say, well, here in India there’s a systemic [non-performing loans] problem. Will that start to transact?” he added.
Other Asian markets offer opportunities to extend credit at interesting rates, and still others, like the ones involved in commodities and infrastructure, present cyclical opportunities, according to Carstairs.
India is facing a persistent problem with non-performing assets, or “bad” loans. Some financiers, however, have expressed the view that India’s credit issue is overblown and is not a cause for concern.