Asia's high-yield bonds are a great opportunity for investors

As the Asian market becomes more diversified, new prospects emerge across the region

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20240814 mumbai

High-rise buildings in India's financial capital Mumbai. India continues to be a bright spot in the region, with a stable macroeconomic backdrop driven by ongoing digitization, infrastructure development and services exports.  © Reuters

Raymond Gui is the head of fixed income portfolio management for Asia at UBS Asset Management

The high-yield market in Asia has seen a significant structural shift, moving away from its previous domination by China's real estate sector and toward improving credit quality among Asian issuers. These changes are opening up new opportunities for investors in bonds that pay higher interest rates because they have lower credit ratings than investment-grade bonds.

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