FICC Focus Credit Crunch: Around the World of Global Credit in 60 Minutes
5 snips
Aug 20, 2025 In this insightful discussion, Tim Tan, Lead Asia Credit Strategist; Jason Lee, Associate covering China and India bonds; Basel Al-Waqayan, Middle East Fixed Income Strategist; Hema Patel, European Credit Strategist; and Reto Bachmann, Chief Strategist for Structured Finance, unpack the dynamics of global credit markets. They delve into the growing interest in Asia dollar bonds and Renminbi alternatives, explore the resilience of the Middle Eastern Sukuk market, and analyze trends in European green credit and structured finance, providing valuable strategies for investors.
AI Snips
Chapters
Transcript
Episode notes
Asia Dollar Credit Is Unusually Vulnerable
- Tim Tan warns Asia dollar credit trades at record-tight spreads, leaving little room for spread tightening.
- He says rate-driven returns risk being wiped out by rapid spread widening during credit stress.
Balance High-Yield Portfolios Toward Wider Spreads
- Tim Tan advises high-yield investors to avoid concentrated low-spread names and balance exposure across idiosyncratic wide names.
- He recommends exposure to wider distressed credits rather than the ultra-tight segment to capture idiosyncratic risk premia.
CNH/Dim Sum Gaining Real Market Share
- Tim Tan sees dedollarization driving flows into offshore renminbi (CNH) and the dim sum market.
- He notes dim sum issuance now outpaces Asia dollar issuance monthly and has grown to about $200bn outstanding.