Asia Pacific Bonds: Sgd Credit Steady Amid Geopolitical Crosscurrents

SGD-denominated bonds continue to demonstrate resilience and healthy returns in 2026, outperforming broader IG benchmarks. UBS maintains a stable outlook, emphasizing yield carry over spread compression while favoring selective credit risk exposure.

Key Takeaways

• 1.SGD-denominated bonds have delivered healthy returns of 1.7% in 2026, outperforming Asia and US IG credit.
• 2.Future returns are expected to be driven by yield carry, as SGD bond markets show stable rates and spreads.
• 3.Credit fundamentals remain healthy with low default risks, supported by strong institutional and retail demand.

Table of Contents

• SGD credit: Steady amid geopolitical crosscurrents
• Asia Pacific bonds
• SGD bonds have delivered healthy returns in 2026
• Stable credit fundamentals supported by declining funding costs
• SGD bond issuance on track to match last year's bumper supply
• SGD credit returns likely to be driven by carry going forward
• SGD credit investment strategy
• SGD top bond picks
• Issuer updates
• Government-linked issuers
• Real estate developers
• REITs/Business Trusts
• Industrials / Infrastructure
• Communications
• Others

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