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Our Top Picks
We highlight some of the bonds we currently prefer, based on the value they offer and the strength of their credit.
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OUR TOP PICKS
Sovereign Bonds
as of July 13, 2025
Republic of Korea
- Issuer: Republic of Korea
- Credit Rating: ( Aa2 / AA / AA- )
- Bond: KOREA 5.625 25
- Indicative Yield-to-Maturity (YTM): 4.22%
The Republic of Korea, or South Korea, boasts the world’s 12th largest economy by nominal GDP (estimated at USD 1.790 trillion in 2025) and is a global leader in technology and innovation, particularly in the semiconductor industry. While facing demographic challenges such as a rapidly aging population and low birth rates, the nation maintains strong economic fundamentals and sound macroeconomic policies, with a focus on maintaining macroeconomic balance, fiscal sustainability, and continued structural reforms to boost productivity and address long-term challenges.
Republic of Mexico
- Issuer: Republic of Mexico
- Credit Rating: Baa2 / BBB+ / -
- Bond: MEX 1.43 27
- Indicative Yield-to-Maturity (YTM): 1.58%
Mexico is Latin America’s second-largest economy and ranks among the top 15 globally, with an estimated GDP of USD 1.79 trillion in 2023. Classified as an “Upper-Middle Income, Developing” economy by the World Bank, it boasts a robust export sector primarily in petroleum, digital processing units, and automobiles, fueled by a strong services sector and an increasingly skilled workforce. The country exhibits strong fiscal management with consistent targets, low public debt, and high tax revenues, while private sector analysts anticipate economic growth of 1.00% by the end of 2025 and 1.12% for 2026. However, Mexico faces risks due to its heavy reliance on the US economy for 75% of its exports and the possibility of increased fiscal deficits driven by the financing needs of Pemex. For structured products and portfolio diversification we also favor this JPY-denominated bond for cross-currency swap.
Sultanate of Oman
- Issuer: Sultanate of Oman
- Credit Rating: Ba1 / - / BB+
- Bond: OMAN 6.75 27
- Indicative Yield-to-Maturity (YTM): 4.61%
Oman possesses a developing, hydrocarbon-reliant economy, ranking as the 73rd largest globally by nominal GDP as of 2024, estimated at around USD 107 billion. Its economic foundation is primarily built upon its oil and gas reserves, which historically accounted for a significant portion of its GDP and export earnings, though diversification efforts are underway. While still dominant, the government has been actively promoting non-oil sectors like tourism, logistics, manufacturing, and mining through its Oman Vision 2040 initiative to reduce economic reliance on hydrocarbons. The country benefits from its strategic location at the mouth of the Persian Gulf, facilitating trade. It maintains strong economic ties with Gulf Cooperation Council (GCC) member states and Asian economies. Oman’s economic outlook for 2025 is shaped by global energy prices, the success of its diversification programs, and regional stability.
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OUR TOP PICKS
Corporate Bonds
as of July 13, 2025
Hyundai Motor
- Issuer: Hyundai Motor
- Credit Rating: A3 / A- / A-
- Bond: HYNMTR 5.1 30
- Indicative Yield-to-Maturity (YTM): 4.83%
Hyundai Capital America (HCA) is Hyundai Motor Group’s primary captive finance arm in the US, playing a critical role in supporting vehicle sales for Hyundai, Genesis, and Kia through a comprehensive range of financing and leasing solutions for both customers and dealerships. Its robust financial performance and significant contribution to the Group’s overall profitability are expected to help offset potential negative impacts from US tariffs on vehicle sales. HCA benefits from a strong “keepwell” support agreement with Hyundai Motor, which includes a particularly robust fixed-charge coverage provision, demonstrating the parent company’s commitment and further enhancing HCA’s financial stability and resilience.
SK Hynix Inc.
- Issuer: SK Hynix Inc.
- Credit Rating: Baa2/BBB/BBB
- Bond: HYUELE 5.5 29
- Indicative Yield-to-Maturity (YTM): 4.59%
SK Hynix, a global leader in memory semiconductors, delivered strong Q1 2025 results, exceeding expectations in topline growth and EBITDA margin, while also expanding free cash flow and maintaining stable net debt metrics. The company is expected to see a marginal improvement in its debt metrics over the next year due to resilient growth, higher EBITDA margins, strong free cash flow, and lower net debt, although limited room for further spread compression is anticipated given increased headline risk from US tariffs and potential AI overcapacity. Despite deriving 73% of its Q1 2025 revenues from the US and facing vulnerability to US tariff risks, SK Hynix benefits from its designation as a “Validated End User” by the US government, offering an indefinite waiver for importing US chip equipment into its Chinese plants. As a major player in DRAM (80% of Q1 2025 revenues) and NAND Flash, the company maintains its technological leadership through significant capex and R&D, a crucial factor in the highly cyclical memory sector.
Bank of Philippine Islands
- Issuer: Bank of Philippine Islands
- Credit Rating: BBB
- Bond: BPIPM 5 30
- Indicative Yield-to-Maturity (YTM): 4.41%
The Bank of the Philippine Islands (BPI), the third largest bank in the Philippines and the oldest in Southeast Asia, is considered systemically important with strong implicit government and explicit Ayala Corporation support. The bank exhibits strong and improved profitability and comfortable liquidity, though its capital management has become less conservative and asset quality warrants monitoring due to increased growth in unsecured retail and MSME loans, which they target to grow to 30% of their loan book from 29% as of 1Q 2025. The bank’s predominantly corporate loan book (71% of total loans as of 1Q 2025) provides a solid foundation and strong provisioning capacity to absorb potential asset quality risks, further bolstered by its recent acquisition of Robinsons Bank in January 2024.
