Trading Asia’s credits

Basis Capital Management’s chief investment officer, Steve Howell, talks about the fund’s strategy of exploiting relative value opportunities in the region’s credit markets. Saima Farooqi reports

Tightening credit spreads in Asia have forced a retreat by some hedge funds from the region’s credit markets, particularly in Japan, where spreads are hovering at historical tights. But Steve Howell, chief investment officer of Sydney-based Basis Capital Management, reckons there are still plenty of opportunities in Asian credits.

The Basis Pac-Rim Opportunity Fund is a predominantly Asian-focused multi-strategy fund that targets relative value and arbitrage opportunities across fixed-income