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Beyond misconceptions: Why Asia-Pacific investment grade is a hidden gem

With strong fundamentals, a track record of resilience, and an evolving market structure that is attracting global institutional capital, Apac IG offers an attractive proposition in today’s uncertain investment environment

    • Apac investment-grade (IG) credit has quietly evolved into a robust and sophisticated asset class, anchored by the US$2 trillion Asia dollar bond market, of which 90 per cent is rated IG, making it an opportunity too big to ignore.
    • Apac investment-grade (IG) credit has quietly evolved into a robust and sophisticated asset class, anchored by the US$2 trillion Asia dollar bond market, of which 90 per cent is rated IG, making it an opportunity too big to ignore. PHOTO: PEXELS
    Published Sat, Mar 22, 2025 · 05:00 AM

    FOR too long, Asia-Pacific credit markets have been misunderstood – often perceived as inherently risky or merely an extension of emerging markets.

    In reality, Apac investment-grade (IG) credit has quietly evolved into a robust and sophisticated asset class, anchored by the US$2 trillion Asia dollar bond market, of which 90 per cent is rated IG, making it an opportunity too big to ignore.

    With a diverse set of developed and developing economies, strong institutional participation, and attractive risk-adjusted returns, we believe this often-overlooked asset class presents opportunities for alpha that go beyond conventional market assumptions.

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