SGD Credit Monthly: Asia Pacific Bonds

SGD credit has recovered its recent geopolitical-driven losses and remains resilient. UBS maintains its strategy of selectively favoring lower-rated IG bonds and corporate perpetuals to augment portfolio yields.

Key Takeaways

• 1.SGD interest rates have retraced following a temporary spike caused by the Iran conflict, with the 10-year yield falling below 2.1%.
• 2.SGD credit fully recovered its 1.8% March loss in April, supported by the limited impact of the Iran conflict on issuer fundamentals.
• 3.The investment strategy remains focused on selectively taking credit risk through lower-rated IG, quality HY bonds, and corporate perpetuals to enhance yield.

Table of Contents

• SGD rates have retraced from its highs
• SGD credit has fully recovered its March drawdown
• Healthy performance from our SGD bond selection
• SGD credit investment strategy
• Key risks
• Table 1 - Selection of SGD credits
• UBS CIO risk views
• UBS CIO valuation views
• Required Disclosures
• Statement of Risk
• Risk Information

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial