Halister News

(Bloomberg) -- “For bonds like Perisai, where the assets are overseas, we think the recovery prospects will be less than 5 cents on the dollar,” says Alexander Zeeh, chief executive officer at S.E.A. Asset Management in Singapore.

• Says S.E.A Asian High Yield Bond Fund “loaded up” on Singapore bonds when Perisai, Swissco defaulted; fund has $21 million of assets, according to Bloomberg-compiled data
• Says likes Singapore bonds because the market is overlooked by large fund managers and sees value in the bonds
• “ We recently bought Ezion’s Singapore dollar bonds. The company is not in good shape but they recently had a rights issue, and we are confident that they will be able to repay their short-dated bond”
• Says fund sold China Hongqiao dollar bonds recently, as co. postponed reporting date and had an issue with auditor
•  “A lot of Singapore dollar bonds are held by a relatively inexperienced investor base and some restructurings have hit bumps in the road that you would not see anywhere else”
• “Investors have to go after the private banks that sold them the bonds. For some of the Singapore bondholders, I don’t think they were made aware of risks when buying these bonds”
• Fund buys bonds with a very short duration, average duration 1-3 years
• S.E.A. Asian High Yield Bond Fund returned 2.4% this year, according to Bloomberg-compiled data
• NOTE: Perisai Granted Interim Restraining Order By Kuala Lumpur Court
• NOTE: Hongqiao Bonds Erase Gains After Weiqiao Textile Auditors Quit