Commentaries

October 2020 - Attractive entry point in Asian credit markets - Tactical Fund Manager's Comments

12 November 2020

Clement Perrette, Gilles Pradère

Amongst EM regions, tighter credit spreads that have prevailed in Asia IG USD credit has eroded over the past months. The 5-year average spread between Asia IG USD and EM IG USD credit stands at -30 bps. With macroeconomic figures of Asian countries indicating better fundamentals compared to other EM regions overall, the IG credit market offers today an interesting investment opportunity for investors.

Asia IG USD vs EM IG USD Credit
Credit Spread Differential

Source: Bloomberg, Nexus, as of 30.10.2020

 

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