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Asia’s post-selloff credits worth a second look
Is there an opportunity lurking behind the recent selloff? Our investment counselors think so.
By Metrobank Investment Counselor Department
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Asian credits were hit especially hard with a sharp selloff triggered by rising US Treasury (UST) yields and widening credit spreads.
Gains made since early 2024 were wiped out as spreads on Asia Investment Grade (IG) and High Yield (HY) credits widened significantly. We are now seeing a slight improvement in sentiment after a 90-day tariff truce, though spreads remain elevated.
We see this as an opportunity to pick up cheap Asian High Yield credits.
What’s cheap, what’s not
Asia IG credits are not cheap yet. The extra return or spread investors get for buying top-rated Asian companies is still low compared to long-term averages. These bonds are offering slightly better returns than usual, but not by much. Compared to similar US bonds, they’re still priced a bit higher than they usually ar
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