Noble Apex News

While the path to policy easing or rate cuts in 2024 could be bumpy, it still presents a constructive backdrop for fixed income. Moreover, with starting yields across many fixed income sectors hovering near decade highs, it could be opportune to lock in elevated yields as central banks approach the end of their rate hike cycles.

Asia assets should stay relatively resilient as Asian economies offer a larger growth alpha and lower inflation when compared with developed markets. Price action across Asia credit suggests light positioning and a generally cautious attitude towards the Asia credit market. The reason for caution is not related to the macro conditions or credit fundamentals within Asia but rather the lingering uncertainties on the global macro outlook. Hence clarity on the macro front will help increase conviction amongst Asian assets investors to add risk. Asian economies are experiencing growth tailwinds, Asian central banks are nearing the end of rate hike cycles and Asian currencies are strengthening, limiting the downside risks.