What is the outlook for Asian credit versus developed markets?

Globally, approximately $5.5trn of bonds trade with negative yields and nearly one quarter of the world's GDP comes from countries with negative interest rates.

In this low-to-negative interest rate environment, Asia (ex Japan) represents a fixed income market that stands out as an oasis for investors thirsting for yield without undue risk. More importantly, despite its significance and with approximately $8.8trn in total and $800bn in hard currency debt outstanding, Asian credit is a largely overlooked sector. It offers numerous benefits in terms of diversification and alternative sources of returns. Can Asian fixed income sustain its 'supercharged' growth? In the last decade, we have seen Asian economies gain ground and become a driving ...