Credit Suisse’s Woods Is Overweight Asia High-Yield Corporate Bonds

The video discusses the convertible bond market, focusing on tech companies leveraging rising equity markets for funding. It highlights the impact of China's deleveraging campaign on corporate liquidity and the growing investor interest in high yields and equity upside. The video also covers market trends, including spread tightening and the risks associated with supply and redemption. Finally, it touches on China's economic stabilization and its influence on local and global investor demand.

Why are tech companies interested in the convertible bond market?

• They want to avoid equity markets.

• They have limited access to liquidity.

• They are looking for low-risk investments.

• They are state-owned enterprises.

What is a key feature of high-yield investments that attracts investors?

• High coupon payments

• Long duration

• Stable equity markets

• Low default rates

What was the performance of Asian high yields year to date?

• Around 9-10%

• Around 3-4%

• Around 7-8%

• Around 5-6%

What is a significant risk mentioned in the market?

• Political instability

• Currency devaluation

• Redemption risk

• High inflation rates

What is the outlook for the Asian high yield space?

• It is expected to remain stable.

• It is expected to decline.

• It is expected to face high default rates.

• It is expected to improve.