Fixed Income

As China pivots from a property-driven model, institutional capital is chasing high-growth opportunities in AI and the energy transition, fuelling demand for onshore A-share listings, and redefining the strategic role of Hong Kong in facilitating global allocations.

Institutions are also reevaluating the concept of a risk-free rate with developed nations' debt piling up, an AsianInvestor conference heard.

Local currency and default risks are among the challenges for investors navigating emerging market debt. But they can be a good play for those looking to unwind some of their US debt positions, experts say.

A combination of disciplined fiscal management, resilient corporate earnings, and a decoupling from US monetary policy is reshaping the investment case for emerging markets, drawing renewed interest from global portfolios.

With petroleum inflows nearing zero, Timor-Leste’s $18.7bn fund pivots to investment returns and regional diversification to sustain its future.

Malaysia's national reinsurer is positioning for reinvestment risk and liquidity challenges while finding opportunities in domestic credit markets, as conservative fiscal policies and stable fundamentals provide a counterweight to global uncertainty.

Scan Holdings family office, led by sisters Sonakshi and Juhi Agarwal, is combining institutional rigour, in-house research and a hedge fund-style approach to managing the family’s proprietary capital.

The journey for an active ETF from product launch to institutional portfolio in Asia can take years, as chief risk officers and due diligence teams move slowly to get comfortable with their innovative structures.

A move away from US assets is accelerating as investors seek refuge in European bank debt, a market offering stability from ECB policy and insulation from tariffs and geopolitical ructions.

Risk-based capital frameworks across Asia are fundamentally changing how insurance investment teams approach asset allocation, with interest rate challenges and capital efficiency becoming central to investment strategy development.

Policy credibility and deepening capital markets are transforming Asian fixed income from a tactical play into a strategic allocation, even as managers debate whether the region can compete on yield with other emerging markets.

With US monetary policy entering a new phase, Asian credit markets are attracting attention thanks to cleaner corporate balance sheets and an attractive yield profile.