Emerging-Market High Yields Favored, Bank of Singapore's Lee Says

The video discusses the significant gains in the CSI 300 index and improved financial conditions, particularly in Asia. It highlights the optimism in trade relations between the US and China, which has been priced into the market. However, there is a risk of a market pullback if trade outcomes disappoint. The speaker suggests a long-term positive outlook on easing trade tensions and Chinese government stimulus, recommending an overweight on risk assets like Asian equities. In the short term, nimbleness is advised due to potential pullbacks. The fixed income space, particularly EM high yield, remains attractive due to strong fundamentals and subdued default rates.

What concerns are raised about the potential for a pullback in the market?

What factors contribute to the attractiveness of EM high yield investments?