Shorter-duration bonds shine in Asia as Trump’s tariffs roil markets

[SINGAPORE] US President Donald Trump’s tariffs shook markets across asset classes, sending investors searching for shelter. Some landed on cash, some on gold, but some money managers are finding comfort in fixed income.

“In these periods of volatility, people should look to credit and fixed income, because the income on offer is as high as it’s been since the start of my career in 2010 post-financial crisis,” said Stephen Gough, Singapore-based managing director and head of Asia credit at BlackRock, the world’s largest asset manager with US$11.58 trillion in assets under management.

“The yields on offer more than compensate you for the volatility and credit and if you are a little worried about equities, credit is a good place to get 6 to 9 per cent depending on whether you want to be at investment grade or higher,” he said. “And we like Asia because of the shorter duration, so it’s very hard to have a negative absolute return with the carry where it is.”