Group 1 - Global borrowers issued at least $90 billion in investment-grade bonds on Tuesday, marking one of the busiest weeks of the year and bringing some credit markets close to record highs [1] - In the US, 27 companies issued high-grade bonds, just two shy of the record set after last year's Labor Day holiday, with a total of $43.3 billion in debt sold, the third-highest on record [1] - In Europe, at least 20 borrowers, including sovereign nations, issued over €47 billion ($54.7 billion) in investment-grade bonds, and when combined with high-yield bond issuers, the total reached €49.6 billion, surpassing the earlier record of €47.6 billion for a single day [1] Group 2 - In Japan, at least seven companies issued a total of $10 billion in dollar bonds on the same day, with Japanese issuers surpassing $100 billion in dollar and euro bond issuance for the first time in a year [1]

Core Viewpoint - The HSBC Asian High Yield Bond Fund aims to achieve an annualized return that exceeds its benchmark index, primarily investing in Asian dollar-denominated high-yield bonds, with a higher allocation to emerging market sovereign and investment-grade bonds compared to peers [2][4]. Fund Overview - Fund Code: 968092 - Fund Type: Asian High Yield Bonds - Benchmark Index: JPMorgan Asia Credit Index Non-Investment Grade Total Return Index [1] Fund Management - The fund was established on February 3, 2020, with a total fund size of 8.18 billion yuan as of March 25, 2025 [2]. - The fund is managed by a team including Mei Lizhong, Lin Jiaming, and Cai Jialin, with Mei Lizhong having nearly 30 years of investment management experience [4][6]. Performance Metrics - From May 2011 to February 2025, the fund achieved an annualized return of 2.58%, ranking in the 32nd percentile among similar funds [2][8]. - The fund's volatility, measured by standard deviation, was 8.63%, lower than the Morningstar peer average of 10.13%, also placing it in the 32nd percentile [8]. - The fund's annualized comprehensive fee rate is 1.36%, below the median of 1.49% for similar funds [8]. Investment Strategy - The fund employs a combination of top-down and bottom-up investment approaches, with a focus on macroeconomic analysis to determine asset allocation across credit, interest rates, and currencies [6][7]. - The fund's duration is generally adjusted within one year of the benchmark index duration, which is higher than the average duration of similar funds, exposing it to greater interest rate risk [6][7]. Risk Management - The fund has a higher exposure to emerging market sovereign and quasi-sovereign bonds, which can lead to more stable performance during credit market downturns [3][7]. - Recent challenges include defaults in the real estate sector, which have negatively impacted the fund's performance due to a significant allocation to real estate bonds [6][7]. Long-term Outlook - Despite short-term performance pressures, the fund has demonstrated strong long-term performance, with a risk-adjusted return (Sharpe ratio) ranking in the 19th percentile among peers [8].