Asian credit markets performed well in 2019, in line with our bullish view at the end of 2018. The strong performance was driven by attractive valuations, peaking US rates and China’s de-leveraging policies being put on hold.
Going into 2020, the yield pick-up offered by Asian credit has become more pronounced. Valuation remains attractive both relative to other regions and to its own historical range, while fundamentals and technicals are very supportive. Medium-term positive outlook for Asian credit markets stay intact.