Shinhan AM's Hong on Global Credit

The video discusses the current landscape of fixed income and credit markets, focusing on Fed rate expectations and the impact of treasury volatility. It highlights emerging market opportunities, particularly with China's reopening, and the attractive credit spreads over U.S. Treasuries. The analysis extends to Asian bonds and regional EM performance, noting the recovery in Europe post the Russia-Ukraine conflict. The video concludes with insights on interest rate trends, spread volatility, and potential opportunities for tightening spreads.

What is the current outlook on the volatility of treasuries according to the transcript?

• Volatility will match last year's levels.

• Volatility is expected to remain subdued.

• Volatility is expected to increase significantly.

• Volatility is not a concern for the market.

Why are emerging markets considered favorable in the current environment?

• Because of declining U.S. interest rates.

• Because of China's reopening and fiscal policy push.

• Due to stable political conditions.

• Due to high inflation rates.

What is the historical significance of the current credit spreads over U.S. Treasuries?

• They are at a historical high.

• They are average compared to past years.

• They are irrelevant to current market conditions.

• They are at a historical low.

How have higher U.S. yields affected Asian government bonds?

• They have had no impact on Asian bonds.

• They have led to the worst month since September for Asian bonds.

• They have improved the performance of Asian bonds.

• They have attracted more funds to Asian markets.

What is Shannon Asset Management's current stance on duration?

• They are avoiding duration entirely.

• They are long on duration.

• They are short on duration.

• They are neutral on duration.