Value Starting to Emerge in Fixed Income Assets: Zeng

The video discusses the current state of market yields, highlighting the attractiveness of fixed income assets, particularly in Asia. It examines China's economic challenges due to COVID-19 and potential recovery signs. The discussion extends to corporate sentiment, default risks, and restructuring in the market. Opportunities in Asian credit markets, especially in Southeast Asia, are explored, along with the impact of central bank policies on these markets.

What has been the trend in yields and opportunities in fixed income assets recently?

• Yields have increased, making opportunities more enticing.

• Yields have remained stable with no significant changes.

• Yields have decreased, making opportunities less enticing.

• Yields have fluctuated without a clear trend.

What is one reason for the peak in China pessimism?

• China's GDP growth has doubled.

• The latest COVID wave has peaked.

• China has reduced its export tariffs.

• The Chinese Yuan has strengthened significantly.

What is a key factor needed for the market to move forward from its current state?

• Increased government spending

• Clear restructuring proposals and recovery values

• Higher consumer spending

• More foreign investments

Which Asian countries are considered attractive for high yield investments?

• China and Taiwan

• Southeast Asia, India, and the Philippines

• Russia and Kazakhstan

• Japan and South Korea

How have the high yield corporates in Southeast Asia and India changed compared to US high yield?

• They have become less attractive than US high yield.

• They now offer a lower yield than US high yield.

• They offer almost 300 basis points of pick up over US high yield.

• They have the same yield as US high yield.

What role does domestic demand play in Asia's economic outlook?

• It is expected to be weaker than external demand.

• It has no impact on the economic outlook.

• It is expected to decline significantly.

• It will help fill the gap left by softening external demand.

Which central bank is primarily influencing Asia's credit markets?

• European Central Bank

• Bank of Japan

• Federal Reserve

• Reserve Bank of India