Navigating the Asian fixed income landscape in H2 2024

IN THE first half of 2024, Asian fixed income markets have delivered stellar performance, despite the global economic uncertainty. Asian credit has generated a total return of 2.8 per cent, while Asian high yield has led the way with 10.5 per cent.

Notably, China’s fixed income sector has been a standout, with China investment grade and high yield returning 2.4 per cent and 13.9 per cent, respectively, defying the bearish sentiment that dominated initial forecasts.

Looking ahead to the second half, Asian fixed income is expected to remain on a stable footing, driven by three key themes: a stable political landscape, an improving credit cycle, and “carry-with-risk” discipline.