Viewpoints

Against a shifting macro, political and geopolitical backdrop, our fixed income portfolio managers explore the future prospects for high yield, emerging markets debt, and investment grade credit.

With major central banks having started their rate-cutting cycles, and domestic tailwinds supporting individual regions, there is a compelling case for Asian equities.

Targeted policy support in China and the start of the Fed’s rate-cutting cycle are supportive for the outlook on Hong Kong-China equities—but domestic and global uncertainties remain.

With the favorable fundamental and technical backdrop firmly in place, and attractive income opportunities remaining in both bonds and loans, the case for high yield continues to be compelling.

The maturity wall facing high yield bond issuers has garnered much attention. But given the market’s short duration profile, lower prices and higher-quality relative to history, the reality facing issuers is less daunting.

From potential economic growth to dovish monetary policy, a number of factors are shaping a positive outlook for Asian equities in the coming months.

Company fundamentals that are likely to improve and the potential for positive policy surprises underly our constructive view of Hong Kong-China equities in the coming months.

Compelling income opportunities supported by favorable fundamental and technical conditions continue to attract investors to high yield bonds and loans.

We have been investing in high yield bonds, loans and collateralized loan obligations (CLOs) for decades—managing investments on behalf of our clients through the ups and downs of multiple market cycles. And importantly, we have done so with consistency.