Viktor Hjort told Bloomberg that improvements to regulation in Asia designed to stop a repeat of the financial crisis means that there is less risk attached to such investments.
He said that there was generally one industry most affected by a downturn and in this case it was the financial sector.
"Typically those sectors afterwards go through an extended period of de-risking that is very credit-friendly and that's what banks have embarked on now," the Morgan Stanley strategist said.
Mr Hjort added that his own model portfolio is currently made up of 55 per cent of bank debt in the investment-grade section.
Earlier this week, an unnamed source told the Financial Times that UBS is in talks to set up a private equity fund using local currency in China.
By Asim Shah