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Navigate uncertainty and accelerate your return potential
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The Asian fixed income market has undergone transformative developments over the years and has become an increasingly important asset class for global investors. An allocation to Asian fixed income can provide investors with diversification benefits and exposure to the growing opportunities in Asia’s dynamic economies. At HSBC Global Asset Management, we have been investing in Asian fixed income markets throughout various market cycles for nearly 25 years. Our award winning Asian fixed income team continues to stay focused on generating alpha even in times of market uncertainty.
Why invest in Asian fixed income?
Asia is made up of economies at different phases of economic development, while unified in terms of growth direction, and diversified in terms of government policies and market conditions
The Asian fixed income market is diverse in nature and is made up of various countries/regions, sectors, tenors and credit buckets
Source: IMF, Bloomberg, HSBC Asset Management, as of May 2020. Credit rating is expressed as sovereign rating from Moody’s/S&P’s. GDP per capita is based off IMF forecasts for 2019 in US dollar
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.
The Asian fixed income market is large and is sized at over USD 19 trillion, after having grown phenomenally just in the past 10 years
The Asian fixed income market has undergone transformative developments over the years, particularly due to China’s steady efforts to open up its capital markets to global investors, resulting in ongoing inclusion of Chinese onshore assets into key global indices
Source: JP Morgan, Asianbondsonline, as of March 2020
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.
Valuations of Asia dollar corporate bonds are attractive on a relative and historical basis
Source: JP Morgan, Bank of America Merrill Lynch, as of 9 October 2020.
Asian local government bond yields offer a yield premium versus other regions
Source: Bloomberg as of 9 October 2020
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.
HSBC Asian Fixed Income: Survival of the Fittest
HSBC Global Asset Management has been investing in Asian fixed income over many market cycles
Source: HSBC Global Asset Management, as of May 2020
Why HSBC Global Asset Management for Asian fixed income
Key Asian fixed income strategies
Source: HSBC Global Asset Management as at 31 May 2020.
Any portfolio characteristics shown herein, including strategy and allocations among others, are for illustrative purposes only. The characteristics may differ by product, client mandate or market conditions. Information may be changed from time to time without notice.
Hear from our experts
Webinars
Investing in Asia’s recovery with fixed income
Cecilia Chan CIO, Fixed Income, Asia Pacific
HSBC Global Asset Management
Ming Leap Portfolio Manager, Fixed Income
HSBC Global Asset Management
Catherine Tsang Product Specialist, Fixed Income
HSBC Global Asset Management
With the “lower-for-longer” scenario persisting amidst the COVID-19 pandemic and the difficult economic environment, Asian bonds continue to offer a yield advantage versus other comparative markets. In this webinar, Cecilia Chan, Ming Leap, and Catherine Tsang will discuss how they have been navigating 2020’s uncertainties and their views on where the attractive opportunities lie in Asian bonds’ hard currency and local currency markets.
In this webcast, our specialists, Bill Maldonado and Renee Chen, take a closer look at topics that are dominating the headlines – China's ongoing recovery after the global pandemic, outlook for the economy amidst escalating US-China tensions and China's economic strategy of "dual circulation" as it seeks to cope with increased external risks.
China fixed income - Leading in a post COVID world
Ming Leap Portfolio Manager, Fixed Income
HSBC Global Asset Management
Catherine Tsang Product Specialist, Fixed Income
HSBC Global Asset Management
With China being one of the first countries to begin recovery from the COVID-19 pandemic, the onshore China bond market is already seeing strong demand from foreign investors and in May recorded the largest monthly net inflows in a year. In this webinar, Ming Leap and Catherine Tsang discuss investing in China fixed income in a post COVID world.
What are the post-pandemic market drivers to watch out for and how is the macro landscape benefiting RMB bonds?
Can we expect to see more China onshore bond inclusion from global index providers?
What is the assessment of the credit profile and default landscape of RMB bonds?
Elizabeth Allen Head of Credit Research, Asia Pacific, Fixed Income
HSBC Global Asset Management
Alfred Mui Head of Asian Credit
HSBC Global Asset Management
Geoffrey Lunt Senior Product Specialist, Fixed Income
HSBC Global Asset Management
In the midst of uncertainties in 2020, Asia credit has so far fared relatively well and is even expected to see a relatively lower default rate this year versus other major regions. Elizabeth Allen, Alfred Mui and Geoffrey Lunt discuss how Asia credit as an asset class has been navigating the volatility in 2020.
What has contributed to Asia credit’s resilience in 2020?
After a turbulent first half, what is the outlook for Asia credit for the rest of the year?
How has credit research in Asia bonds changed in a post-covid world? Has this changed the opportunity set?
This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.
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This Site is intended for Institutional Investors in Hong Kong only.
Important information
The Funds invest in various investments, such as equities, bonds, money market instruments, collective investment schemes and alternative investments. Each fund has a different investment objective and risk profile.
The Funds may subject to the risks of investing in emerging markets and smaller companies; and may subject to the concentration risks when the investments are concentrated in one or a small number of markets or sectors.
The Funds may invest in non-investment grade bonds, unrated bonds, contingent convertible securities, mortgage backed securities, asset backed securities and urban investment bonds issued by PRC local government financing vehicles (LGFVs) which are subject to additional risks and volatility.
The Funds may have substantial investments in securities issued by a single sovereign issuer (including but not limited to issuer with a non-investment grade credit rating) and are subject to higher concentration risk, sovereign risk and credit risk.
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The Funds may invest in onshore Chinese securities through various market access schemes and China A-shares Access Products. Such investments involve additional risks, including the risks associated with China's tax rules and practices.
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The Funds' investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
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Asia is made up of economies at different phases of economic development, while unified in terms of growth direction, and diversified in terms of government policies and market conditions
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