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Fixed Income

Country Garden Proposes $11.6 Billion Debt Reduction Deal

Country Garden, once China's largest property developer, has proposed a deal to its offshore creditors that would slash its debt by $11.6 billion, Reuters reports. This move aims to secure more time from the Hong Kong high court to implement a restructuring plan. The deal, reached with

China to Sharply Increase Treasury Bond Funding to Spur Growth in 2025

China plans to significantly increase funding from ultra-long treasury bonds in 2025 to stimulate business investment and consumer spending, Nikkei Asia reports. This move aims to revitalize the faltering economy. Yuan Da, deputy secretary-general of the National Development and Reform Commission (NDRC), announced the plan at a press conference. Special

China Dividend ETFs Soar as Investors Ditch Bonds

Chinese investors are flocking to dividend-paying stocks as 2024 draws to a close, propelling two of the largest dividend exchange-traded funds (ETFs) in the country to record-breaking inflows, reports Bloomberg. The Huatai PB CSI Bonus Low Fluctuation ETF and Huatai-PineBridge SSE Dividend Index ETF saw a combined 9.4 billion

Japan Approves Record $730 Billion Budget with Reduced Bond Issuance

Japan's cabinet is set to approve a record ¥115.54 trillion ($731.28 billion) general-account budget for fiscal 2025 on Friday, according to Nikkei Asia. While this represents a significant increase from the previous year, the government plans to finance a smaller portion of the budget with debt.

Chinese Government Bonds Soar to Decade-High Returns, With More Gains Expected in 2025

Chinese government bonds are experiencing an unprecedented surge, poised to deliver their best annual performance since 2014, as reported by Bloomberg. Local fund managers and strategists anticipate continued gains in 2025, driven by a confluence of factors including economic uncertainty and accommodative monetary policy. A Bloomberg index, excluding currency fluctuations,

Indonesia's Bond Market Liquidity at Risk as Central Bank's Stake Soars

Investors in Indonesia are expressing growing concern over potential strain in the nation's bond markets as Bank Indonesia (BI) significantly increases its debt holdings, according to Bloomberg. BI's bond ownership has surged to approximately 25% of outstanding bonds, a sharp increase from just 5% pre-pandemic, driven

China Expands Local Bond Funding to Boost Non-Real Estate Growth

China is broadening the use of special bond funding by local governments to stimulate economic growth beyond the struggling property market, reports Nikkei Asia. The State Council, China's cabinet, announced on Wednesday that proceeds from special bond issues can now be used for a wider range of projects,

Cat Bond Market Hits Record High as Insurers Offload Climate Risk

The market for catastrophe bonds (cat bonds) surged to a record high in 2024, reaching almost $50 billion, as insurers sought to shed risk associated with mounting losses from climate-related disasters, as reported by Bloomberg. Issuance of cat bonds, designed to provide supplemental insurance coverage for events like hurricanes, earthquakes,

Wall Street Bets on Lower US Bond Yields in 2025, Despite Trump Uncertainty

Wall Street expects lower US bond yields in 2025, despite uncertainty around Donald Trump's potential policy impact, reports Bloomberg. Strategists, in their annual outlooks, are forecasting a significant drop in short-term Treasury yields, particularly the two-year note, aligning with the Federal Reserve's current stance. This consensus

Record $600 Billion Floods Global Bond Funds as Investors Bet on Rate Cuts

Global bond funds experienced record inflows exceeding $600 billion in 2024, driven by investor bets on easing monetary policy from major central banks worldwide, as reported by the Financial Times. This surpasses the previous record of nearly $500 billion set in 2021. "This was the year that investors bet