Making the case for Asian IG credit

Analysis of rapidly developing Asian fixed income markets by Bertram Sarmago, investment director – Asian Fixed Income and Jian Wei Loh, portfolio manager at Nikko Asset Management, proposes that there are increasing opportunities to use exposure to diversify against US credit, particularly by using Asian investment grade credit.

In a note on these developments, they suggest that investors should consider a separate allocation to this sector of the IG universe, to also diversify within the broader Asian corporate debt market. Among the key advantages they see include the lowering of downside volatility for both US investment grade or emerging market debt portfolios, and that despite Asian investment grade offering “moderate” returns this year to date compared to higher beta segments of emerging market debt, it is still offering “robust yield” compared to US investment grade returns.

Click here to see the full research note: Asia High Grade Credit – A More Selective Approach


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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