2023 looks to be a bright year for Asian Credit. According to Nikko Asset Management, a benign macro backdrop should remain supportive for credit fundamentals in the new year. “The fiscal deficits of Asian economies are expected to gradually narrow as the need for pandemic support decreases. India and ASEAN economies, supported by a revival in tourism and domestic re-openings, are expected to fare better than their export-dependent North Asian peers,” writes the Asian Fixed Income team.
In the Asia Credit Outlook 2023, Nikko AM points out why there is room for Asia credit spreads to tighten in the early part of the new year, as well as the biggest potential risk for the asset class going forward.
Read the full outlook at nikkoam.com.