Asia Credit Best Ideas: May 2026
Zerlina Zeng, CFA: Head of APAC Credit Strategy
Pramod Shenoi: Head of Asia-Pacific Research, Head of Financials
Lakshmanan R, CFA, FRM: Head of South & Southeast Asia Corporates
Pius Xue, CFA: Senior Analyst
Nicole Chua: Analyst, South & Southeast Asia Corporates
Jonathan Tan Jun Jie: Analyst, South & Southeast Asia Corporates
Lim Ze Hao, CFA: Analyst, Financials
Karen Wu, CFA: Senior Analyst, Financials
Trung Tran: Senior Analyst, APAC Insurance and Middle East Banks
Stephanie Sim, CFA: Analyst, Strategy and East Asia Corporates
Nicholas Chen: Analyst, East Asia Corporates
Zoey Zhou Qianyun, CFA: Analyst, East Asia Corporates
5 May 2026
- How Asia IG and HY spreads tightened as improving sentiment drove a rebound in credit markets.
- What outperforming sectors and issuer trends reveal about shifting investor focus across the region.
- Why lower rated credits led gains amid stronger risk appetite and supportive local funding conditions.
- How regional themes across India, Indonesia, and Hong Kong shaped credit performance dynamics.
- Which opportunities may emerge as spreads stabilize and fundamentals remain resilient.
Executive Summary
Asia credit markets rebounded as spreads tightened across investment grade and high yield segments. Stronger sentiment drove improved returns following earlier volatility.
Investment grade credits showed moderate tightening led by lower quality segments. Higher rated bonds experienced more limited movement.
High yield markets outperformed as spreads narrowed significantly in April. Lower rated issuers saw stronger relative gains during this period.
Core portfolio selections benefited from regional drivers across financials and corporates. Selected issuers contributed to overall spread compression and performance.
Outlook suggests stable trading conditions supported by resilient fundamentals. However external uncertainties continue influencing investor positioning.



