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HSBC Asian Fixed Income

Navigate uncertainty and accelerate your return potential

Awards

The Asian fixed income market has undergone transformative developments over the years and has become an increasingly important asset class for global investors. An allocation to Asian fixed income can provide investors with diversification benefits and exposure to the growing opportunities in Asia’s dynamic economies. At HSBC Global Asset Management, we have been investing in Asian fixed income markets throughout various market cycles for nearly 25 years. Our award winning Asian fixed income team continues to stay focused on generating alpha even in times of market uncertainty.

Why invest in Asian fixed income?

Asia is made up of economies at different phases of economic development, while unified in terms of growth direction, and diversified in terms of government policies and market conditions

The Asian fixed income market is diverse in nature and is made up of various countries/regions, sectors, tenors and credit buckets

Diversified composition
Source: IMF, Bloomberg, HSBC Global Asset Management, as of May 2020. Credit rating is expressed as sovereign rating from Moody’s/S&P’s. GDP per capita is based off IMF forecasts for 2019 in US dollar

Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.

The Asian fixed income market is large and is sized at over USD 19 trillion, after having grown phenomenally just in the past 10 years

The Asian fixed income market has undergone transformative developments over the years, particularly due to China’s steady efforts to open up its capital markets to global investors, resulting in ongoing inclusion of Chinese onshore assets into key global indices

Asia USD bond market size – JACIAsia local currency bond market size
Source: JP Morgan, Asianbondsonline, as of March 2020

Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.

Valuations of Asia dollar corporate bonds are attractive on a relative and historical basis

Investment grade marketsHigh yield markets
Source: JP Morgan, Bank of America Merrill Lynch, as of May 2020.

Asian local government bond yields offer a yield premium versus other regions

Asian local government bond yields
Source: Bloomberg as of 31 May 2020

Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.

 

HSBC Asian Fixed Income: Survival of the Fittest


HSBC Global Asset Management has been investing in Asian fixed income over many market cycles

HSBC has been investing in Asian fixed income over many market cycles
Source: HSBC Global Asset Management, as of May 2020

HSBC’s Asian fixed income capabilities have been ranking at the top of their respective peer groups

Morningstar peer group quartile ranking as of 31 July 2020

Morningstar peer group quartile ranking as of 15 May 2020
Source: Morningstar as of 31 July 2020. Peer ranking is based on the respective bond universe under Morningstar category: HSBC Asian High Yield Bond strategy under the Morningstar Asia High Yield Bond category, HSBC Asia Bond Strategy under the Asia Bond category, HSBC RMB Fixed Income under the RMB Bond category.
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.


Why HSBC Global Asset Management for Asian fixed income

Key Asian fixed income strategies

Key Asian fixed income strategies
Source: HSBC Global Asset Management as at 31 May 2020.
Any portfolio characteristics shown herein, including strategy and allocations among others, are for illustrative purposes only. The characteristics may differ by product, client mandate or market conditions. Information may be changed from time to time without notice.

 

Hear from our experts

Webinars

Investing in Asia’s recovery with fixed income

Cecilia Chan

Cecilia Chan
CIO, Fixed Income, Asia Pacific
HSBC Global Asset Management

Ming Leap

Ming Leap
Portfolio Manager, Fixed Income
HSBC Global Asset Management

Catherine Tsang

Catherine Tsang
Product Specialist, Fixed Income
HSBC Global Asset Management

With the “lower-for-longer” scenario persisting amidst the COVID-19 pandemic and the difficult economic environment, Asian bonds continue to offer a yield advantage versus other comparative markets. In this webinar, Cecilia Chan, Ming Leap, and Catherine Tsang will discuss how they have been navigating 2020’s uncertainties and their views on where the attractive opportunities lie in Asian bonds’ hard currency and local currency markets.

23 September 2020, 5:00PM HKT, 10:00AM BST, 11:00 CET

Register here


China – beyond the headlines

Bill Maldonado

Bill Maldonado
CIO, Asia Pacific
HSBC Global Asset Management

Renee Chan

Renee Chen
Senior Economist & Investment Strategist
HSBC Global Asset Management

In this webcast, our specialists, Bill Maldonado and Renee Chen, take a closer look at topics that are dominating the headlines – China's ongoing recovery after the global pandemic, outlook for the economy amidst escalating US-China tensions and China's economic strategy of "dual circulation" as it seeks to cope with increased external risks.

9 September 2020

Listen here


China fixed income - Leading in a post COVID world

Ming Leap

Ming Leap
Portfolio Manager, Fixed Income
HSBC Global Asset Management

Catherine Tsang

Catherine Tsang
Product Specialist, Fixed Income
HSBC Global Asset Management

With China being one of the first countries to begin recovery from the COVID-19 pandemic, the onshore China bond market is already seeing strong demand from foreign investors and in May recorded the largest monthly net inflows in a year. In this webinar, Ming Leap and Catherine Tsang discuss investing in China fixed income in a post COVID world.

  • What are the post-pandemic market drivers to watch out for and how is the macro landscape benefiting RMB bonds?
  • Can we expect to see more China onshore bond inclusion from global index providers?
  • What is the assessment of the credit profile and default landscape of RMB bonds?
30 June 2020

Listen here


Asia credit - Navigating the winds of change

Elizabeth Allen

Elizabeth Allen
Head of Credit Research, Asia Pacific, Fixed Income
HSBC Global Asset Management

Alfred Mui

Alfred Mui
Head of Asian Credit
HSBC Global Asset Management

Geoffrey Lunt

Geoffrey Lunt
Senior Product Specialist, Fixed Income
HSBC Global Asset Management

In the midst of uncertainties in 2020, Asia credit has so far fared relatively well and is even expected to see a relatively lower default rate this year versus other major regions. Elizabeth Allen, Alfred Mui and Geoffrey Lunt discuss how Asia credit as an asset class has been navigating the volatility in 2020.

  • What has contributed to Asia credit’s resilience in 2020?
  • After a turbulent first half, what is the outlook for Asia credit for the rest of the year?
  • How has credit research in Asia bonds changed in a post-covid world? Has this changed the opportunity set?
16 July 2020

Listen here


Podcasts

Investing in Asia credit for yield and growth
September 2020

Listen here

The compelling case for Asia high yield bonds
September 2020

Listen here

China bonds: A mainstream allocation for global investors
September 2020

Listen here

India fixed income: Attractive yields with diversification benefits
September 2020

Listen here

 

Resources


Disclaimer

This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.