China local currency
EM local currency
Cautious positioning as spreads offer insufficient compensation for macro risks, such as high refinancing risks and numerous elections
DM sovereign
Corporate HY
Corporate IG
Inflation-linked
0
+2
+3
+4
+1
-1
-2
-3
-4
Moderately overweight as we expect pockets of volatility to provide opportunities as central banks seek to cut rates
Neutral as break-evens provide some protection against the risk of persistent inflationary pressures
Tactically underweight amid strong supply, which could lead to potential indigestion risk, and market positioning becoming structurally long
Neutral since attractive all-in yields and supportive technical are offset by tight spreads
EM hard currency
Neutral, with a preference for higher yielding markets over local China debt
Underweight as yields are not attractive relative to those in developed markets, carry is low and there is limited scope for currency appreciation
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Underweight as yields are not attractive relative to those in developed markets, carry is low and there is limited scope for currency appreciation
Neutral, with a preference for higher yielding markets over local China debt
Cautious positioning as spreads offer insufficient compensation for macro risks, such as high refinancing risks and numerous elections
Neutral since attractive all-in yields and supportive technical are offset by tight spreads
Tactically underweight amid strong supply, which could lead to potential indigestion risk, and market positioning becoming structurally long
Neutral as break-evens provide some protection against the risk of persistent inflationary pressures
Moderately overweight as we expect pockets of volatility to provide opportunities as central banks seek to cut rates
