Bonds from emerging Asian markets may present appealing investment prospects due to high global bond yields, according to UBS. Adrian Zuercher, co-head of global asset allocation at UBS, mentioned on CNBC that they’ve transitioned towards EM Asia, recognizing value in credit and fixed income. He highlighted the strong macroeconomic climate, which has allowed Asian bonds, particularly in the tech sector, to excel recently.
Zuercher noted that current high-yield bonds are of “much better quality” than in the past. He also discussed commodities, stating that gold remains a beneficial asset for portfolio diversification, especially amid a structurally weak U.S. dollar. Furthermore, he emphasized the attractiveness of broad commodity exposure, particularly with rising oil prices influenced by geopolitical tensions. The AI boom has increased demand for commodities like copper as well.
