Morgan Stanley jumps from runner-up to second place in this sector, whose name is changed from Fixed-Income Strategy. This year the Hong Kong–based crew is co-captained by Viktor Hjort and newcomer Edward Susanto, who replaces Hua (Vivien) Gui. The strategists are moderately constructive on Asian credit, overweight on investment-grade credit, favoring banks and sovereigns, and neutral on high yield, Hjort reports, in anticipation of less volatility and greater sector differentiation than in recent years. “We view Asian banks as a defensive play in a global context, and with better fundamentals and technicals than nonfinancial corporations,” he explains. Clients are impressed. The analysts “are quick to respond to specific questions with solid answers backed by substantial evidence, giving that all-important depth and not merely breadth,” attests one buy-side backer. “It’s that special extra edge that counts.” — Pam Baker |