Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Bond Market Monitor: Not Out of the Woods

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Thematic (Sector/Industry)

Mongolia Diversified financials / Thematic (Sector/Industry)

<p style="text-align: justify;">It had been 3 months since we cautioned our readers on the Good, the Bad, and the Ugly of COVID-19 ( <a href="https://www.smartkarma.com/insights/market-monitor-a-corona-hangover" target="_blank" data-smartkarma-citation="insights:36593" rel="noopener">Market Monitor: A Corona Hangover</a>, <a href="https://www.smartkarma.com/insights/market-monitor-friday-13th-pandemic" target="_blank" data-smartkarma-citation="insights:37459" rel="noopener">Market Monitor: Friday 13th Pandemic</a>, and <a href="https://www.smartkarma.com/insights/market-monitor-the-corona-carnage" target="_blank" data-smartkarma-citation="insights:38405" rel="noopener">Market Monitor: The Corona Carnage</a>). Market has rebounded but stayed way below the level prior to COVID-19. We believe negative headline risk on the second wave of the COVID-19 infection and disappointing economic/financial figures remain. Until we have an effective vaccine for the mass (which we heard will take 10 more months to develop), we do not expect the return to a bull market. We see the New Normal as the New Abysmal for global economic growth. That said, a volatile and uncertain market will keep investors in the fixed income market on lowered US rates.</p>
<p style="text-align: justify;">We prefer defensive industries such as utilities, food, agriculture, medical, and consumer non-discretionary. We also prefer renewable energy on a continued focus on fighting climate change (which we believe will receive more support as a result of more believers in science). Rising defaults will bring buying opportunities for those who do homework (see our recent reports: <a href="https://www.smartkarma.com/insights/dr-peng-telecom-media-group-on-ventilator" target="_blank" data-smartkarma-citation="insights:39238" rel="noopener">Dr. Peng Telecom &amp; Media Group: On Ventilator</a>  and <a href="https://www.smartkarma.com/insights/sri-lanka-no-default-this-year" target="_blank" data-smartkarma-citation="insights:39301" rel="noopener">SRI LANKA: No Default This Year</a>). Government support for the national champion corporates and industries will also be key (i.e. property development in China).</p>

It had been 3 months since we cautioned our readers on the Good, the Bad, and the Ugly of COVID-19 ( Market Monitor: A Corona Hangover, Market Monitor: Friday 13th Pandemic, and Market Monitor: The Corona Carnage). Market has rebounded but stayed way below the level prior to COVID-19. We believe negative headline risk on the second wave of the COVID-19 infection and disappointing economic/financial figures remain. Until we have an effective vaccine for the mass (which we heard will take 10 more months to develop), we do not expect the return to a bull market. We see the New Normal as the New Abysmal for global economic growth. That said, a volatile and uncertain market will keep investors in the fixed income market on lowered US rates.
We prefer defensive industries such as utilities, food, agriculture, medical, and consumer non-discretionary. We also prefer renewable energy on a continued focus on fighting climate change (which we believe will receive more support as a result of more believers in science). Rising defaults will bring buying opportunities for those who do homework (see our recent reports: Dr. Peng Telecom &amp; Media Group: On Ventilator  and SRI LANKA: No Default This Year). Government support for the national champion corporates and industries will also be key (i.e. property development in China).

Sri Lanka Government International Bond (SRILAN GOVT)

Market Monitor: The New Abysmal