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Asian Investment Grade bonds have higher effective yield than their US counterparts |
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At the same time, Asian Investment Grade bonds have shorter durations, meaning they are less sensitive to rate movements. This, in turn, helps lower potential volatility |
Position early to capture opportunities arising from peaking rates
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With the US rate hike cycle likely to end soon, investors may consider positioning their allocations ahead of time |
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Looking back at previous cycles, Asian Investment Grade bonds began their uptrend when interest rates trend stayed flat |
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With relatively mild inflation pressure, Asia is expected to end its rate hike cycle sooner. South Korea, Indonesia and India have already stopped raising rates, with room to cut rates potentially. Such a move would be favorable to the bond market. |
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Compared to Europe's and the US', Asia's GDP is stronger and enjoys better growth potential. Asia's outlook is expected to remain optimistic. Supported by robust fundamentals, bonds issued by banks and corporates are worth investing. |