Fundamental Credit Strategy: Markets

A. Why we are not fans of Asian public credit markets investing ?

-12.40%

-10.56%

0.98%

2.28%

3.78%

-9.11%

-9.32%

0.37%

1.71%

3.61%

-15.96%

-29.86%

-6.73%

-2.78%

3.09%

Bloomberg US Aggregate Baa Index

Bloomberg Asia ex-Japan USD Credit Corporate IG Index

Bloomberg Asia ex-Japan USD Credit Corporate HY Index

Year to Date

1 Year

3 Years (Annualized)

5 Years (Annualized)

10 Years (Annualized)

Data as of 31st May 2022

Asian public credit markets offer no risk premium, rather they offer a risk discount compared to developed market credits (both Investment Grade and High Yield).

This is primarily due to frequent episodic and idiosyncratic credit events that lead to underwhelming returns for investors focused solely on Asian credits.

ABOUT US

OTHER

Disclaimer