Tag : credit

There is growing potential for European credit to play an increasingly important part of global fixed income portfolios, as resilient corporate fundamentals, attractive yields and supportive policy underpin valuations. L&G’s Ben Bennett, head of investment strategy for Asia, and Marc Rovers, head of European credit, explore how investors in Asia and globally seek to selectively capture diversified income opportunities in the region.

Asia investment grade (IG) credit should benefit from both the end of the US hiking cycle and potential global economic slowdown, with structural demand likely from burgeoning investor interest, explains Omar Slim, co-head of Asia ex-Japan fixed income at PineBridge Investments.

Supported by Asia’s structural growth story, fixed income assets – including Hong Kong dollar (HKD) bonds – offer investors a potential route to resilient and diversified returns despite the blurry global outlook, according to HSBC Asset Management (HSBC AM).

Thanks to the current rise in yields, the key return driver of the bond market is set to change but its bull run will very likely continue.