Allure of Asia credit: income, quality, diversification
Asia credit has maintained a positive performance this year, offering competitive risk-adjusted returns compared to global developed market bonds
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GLOBAL credit markets have experienced a volatile year so far, marked by rate hikes from major central banks and mixed economic data. Front-end yields have risen significantly since the beginning of the year, with the 10-year US Treasury yield surging almost 50 basis points year to date.
In addition to these global challenges, China has remained a constant focus among market participants due to concerns about its property market, sluggish growth expectations, and geopolitical issues.
Against this backdrop of volatility, we turn our attention to a resilient segment within global credit: Asia credit. At Pictet Wealth Management, we maintain a neutral stance on hard-currency emerging-market bonds overall, and we continue to favour investment-grade Asian corporate bonds.
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