Asia Credit 360⁰: Our full spectrum view

Research evidence excerpt

Asia Credit 360⁰: Our full spectrum view

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Asia Credit 360⁰

Our full spectrum view

Emerging Markets

We provide two-page overviews of 191 credits 30 June 2026

In this 13th annual edition of our Asia Credit 360⁰ publication, we provide some broad Global Corporate Credit

market updates on APAC credit, including current and historical returns, return volatility, Asia

risk drivers, supply-demand dynamics, defaults, rating migrations, fundamentals and

Asia Pacific Credit Rsch Grp

valuation comparisons. In addition to the strategy section, there are two-page write-ups Merrill Lynch (Singapore)

on 193 credits, incorporating our recommendations, business overview, recent Joyce Liang

developments, major challenges and financial performance, and key financial highlights. Research Analyst

Merrill Lynch (Singapore)

+65 6678 0408Strategy overview: constructive bias with selectivity joyce.liang@bofa.com

In 5M26, APAC credit posted +0.9% total return /+0.7% excess ret urn, driven by carry

Sirius Chan

and spread compression, partially offset by higher UST yields. HY outperformed IG with Research Analyst

total returns of +3.4% vs +0.6%, respectively. While broad spread tightening might be Merrill Lynch (Hong Kong) sirius.chan@bofa.com

limited, we see opportunities in individual names. Credit fundamentals are expected to

Xiang Gao, CFA

remain solid given limited impact from West Asia conflict. Gross supply should be higher Research Analyst

YoY, but net supply will likely remain negative as onshore funding costs remain lower than Merrill Lynch (Singapore)

xiang.gao@bofa.com

dollar funding. As the Fed turned hawkish, higher yields should be supportive of demand.

Yusuke Ikeda

Valuation: spread to be range-bound, prefer HY over IG ResearchBofAS JapanAnalyst