Top-10 investment strategies for 2019: #7


#7 We like short-dated Chinese BBs for carry.
Neel Gopalakrishnan17 Jan 2019
Photo credit: AFP Photo


In the credit space, we see short-dated bonds (1-2 years to maturity) from BB-rated Chinese issuers as offering value, with limited downside risk. Chinese HY bonds trade wider than comparable Indian or Indonesian bonds mainly due to weaker technicals (especially supply). The chart below illustrates the yield pick up offered for short-dated bonds.




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#1 Bet on more rate hikes by the Fed
#2 Looking for USDSGD to hit 1.40
#3 Long Indonesian equities
#4 Support for high grade credit, especially BBB
#5 Bullish 10Y China govvies
#6 Short AUD
#7 We like short-dated Chinese BBs for carry
#8 India govvies curve to steepen
#9 Short CNY
#10 Long S-REITS as a defensive play

Neel Gopalakrishnan

Credit Strategist – Emerging Markets
neelg@dbs.com

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