Are Asian credit markets riskier today than in 2015?

Deepening pool of return

Against a backdrop of lower yields in European sovereign bonds, Asian bond markets offer a diversifying, deepening pool of available return according to Yerlan Syzdykov, head of emerging market bonds at Pioneer Investments.

One reason why Asian fixed income may offer an interesting entry point currently can be found in credit spreads, which reflect a consensus that has become steadily more sceptical in recent months. Asian corporate spreads over treasuries have risen steadily since November: JPMorgan CEMBI Broad Diversified Asian spreads have widened by 20% in the period. This widening may reflect any one of a number of factors, ranging from fears of a US recession to concerns around Chinese hard landing. The discrepancy between Asian bond valuations and fundamentals Are Asian bond markets, especially...