A monthly review and outlook of the Asian Quality Bond market.

Key highlights - as at December 2015 

 

  • Asian credit market started the last month of the year on a cautious note as investors await the first rate hike in almost a decade by the US Federal Reserve.
  • On the 17th December, Yellen delivered the 25bps hike as widely anticipated without causing much market reaction. On the 17th December, Yellen delivered the 25bps hike as widely anticipated without causing much market reaction.
  • We maintained our modest overweight position in credits against a still supportive monetary policies backdrop globally, that will lead to the continued search for yield.
  • Challenging times are ahead for Asia though we see some bright spots. Reforms in China, India and Singapore are long-term positive despite the near term growth uncertainty.
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