Neuberger Berman: 'Overweight' Indonesia, Chinese Bonds

The video discusses the impact of trade tensions on North Asian currencies, particularly the Korean won and Taiwan dollar, and their reliance on semiconductor exports. It highlights the potential for currency improvement if trade tensions subside. The video also covers investment strategies in Indonesian local bonds, considering the economic steadiness and real yields, despite potential underperformance due to external funding reliance.

What are the main factors causing headwinds for North Asian currencies like the Korean won?

• High inflation rates

• Trade tensions and slowing growth

• Political instability

• Rising interest rates

Under what conditions might the Korean won and Taiwan dollar see a positive turn?

• Increased domestic consumption

• Reduction in trade tensions and better export competitiveness

• Higher interest rates

• Political reforms

What is the primary focus of the analysis on Indonesian local bonds?

• Their performance in the global market

• The steadiness of the economy and real yields

• The impact of political changes

• The role of foreign investors

What is a significant challenge faced by Indian bonds?

• Reliance on external funding

• High inflation rates

• Political instability

• Lack of investor interest

What is the outlook for Indonesian local bonds in the next 6 to 12 months?

• Complete recovery

• Significant decline

• No change

• Stable with potential for growth