Asian Bonds: Finding Resilience Amid Higher Inflation And Slower Growth

Eastspring Investments provides an outlook on Asian fixed income amid rising inflation, recommending a selective approach to local currency bonds and credit while remaining cautious on duration.

Key Takeaways

• 1.Focus on generating resilient carry while extending duration only when there is greater conviction that inflation and interest rates have peaked.
• 2.Preference for economies with stronger balance of payment positions (e.g., SGD and AUD) amid diverse currency outlooks.
• 3.Asian credits remain fundamentally resilient, with the JACI APAC universe positioned to navigate the current environment.

Table of Contents

• Executive Summary
• 1. With the recent sell-off in bond yields, do you see this as an opportunity to add duration?
• 2. Where do you see the potential opportunities and risks in the Asian local currency bond market?
• 3. What has been the impact of higher energy prices on credit quality in Asia?
• 4. How are you positioning portfolios in the current environment?

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