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

Key highlights - as at October 2016


  • After 9 straight months of positive return, Asian credit market finally gave up some of its impressive year to date gains in October.
  • We maintained our moderate overweight positions in both credit and duration as we expect the relentless search for yield to continue for the rest of the year.
  • We are likely to be stuck in a low growth, low inflation environment for a foreseeable future. What this mean is returns across various asset classes will also be tapered and the income generating feature of an asset class will become more important for investors.
  • We have been using any sell-off as opportunities to add risk in both credit and local currency bonds and will continue with this approach as we head into the end of the year.



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