PIMCO's Lee On APAC Credit Markets Strategy

The transcript discusses dislocations in the credit market, investor behavior, and the impact of the Fed's interest rate cycle on US dollar bonds. It highlights investment opportunities in investment grade and junk space markets, while addressing challenges in the property sector. The discussion also covers recent policy announcements and their potential impact on market outlook, emphasizing the need for selective investment strategies.

What has been the impact of the risk-off mode among investors on the credit market?

• Increased investment in Chinese credits

• Stability in Hong Kong markets

• Sell-off of high-quality Chinese credits

• Rise in non-Chinese credit values

How does the nearing end of the Fed's interest rate cycle affect investment-grade bonds?

• It increases their yield potential

• It leads to higher interest rates

• It makes them less attractive

• It decreases their market value

What is a significant challenge in the Chinese property sector?

• Strong offshore bond market

• Abundant liquidity

• Potential for defaults

• High sales recovery rate

What is the current state of trading liquidity among non-Chinese names like Indonesian and Indian names?

• No trading activity

• High volatility

• Decent demand and liquidity

• Very low demand

What is the outlook for supply within the US dollar bond markets?

• Abundant supply

• Limited supply

• No new issues

• Excessive supply