Executive Summary

Asian dollar credit markets softened as rates shifted and risk appetite faded. Tariff uncertainty, credit stress, and Middle East tensions weighed on sentiment.

Against this backdrop, core investment-grade positioning faced pressure from macro concerns and long-duration moves. However, defensive themes helped offset broader weakness.

High-yield performance was mixed as investors rotated away from riskier pockets. Meanwhile, some names held up better, while others saw renewed caution.

Geopolitical uncertainty is expected to keep global risk sentiment restrained in the near term. Therefore, the strategy leans toward managing credit risk and favoring higher-quality duration exposure.

Across the region, value appears in credits insulated from Middle East spillovers and energy volatility. Portfolio positioning is being refined toward resilience and selective idiosyncratic opportunities.