Gain investment clarity in Asia Pacific through our research, specialized insights, and thought leadership.
Invesco fixed income capabilities are designed to capture market potential.
Our investment teams manage US$459 billion in global fixed income assets*. (As of March 31, 2024)
Our investment professionals average 18 years’ industry experience.
Key market locations provide local knowledge and a global perspective.
With interest rates reaching their highest levels in around two decades, investors have a unique opportunity to capitalize on the business cycle and maximize their income potential.
Under the current market conditions, fixed income with its income potential, relative stability, lower volatility, and potential for diversification has emerged as an attractive choice for investors to lock in attractive yields before rates start to be lowered.
Now’s the time for investors to activate fixed income allocations to drive their income before the window of opportunity closes.
Invesco fixed income teams have the strategies, the scale and the flexibility to meet investors’ objectives with expertise spanning the entire fixed income spectrum, covering credit, rates and currencies.
Expert access: Investors can benefit from diversification through unhedged exposure across geographies, sectors, and instrument types. We are adjusting the composition of a portfolio to respond to changing market conditions and to take advantage of opportunities that arise.
The process includes:
• Identifying Long-Term Trends in demographic shifts, technological advancements, and environmental changes
• Economic Analysis on GDP growth, inflation rates, and monetary policies
• Thematic Investing in specific sectors or industries that are expected to benefit from these long-term trends and economic conditions.
We monitor and adjust the risk levels within a portfolio to align with the investor’s risk tolerance and investment objectives, by spreading investments across various asset classes, sectors, and geographies to reduce exposure to any single risk factor.
High quality debt: We focus on investment grade corporate bonds, issued by top companies that are highly solvent with strong balance sheets. We conduct independent assessments of every issuer’s creditworthiness, providing our investors with a reliable source of income while preserving capital.
Default risk on the high-quality securities we invest in is typically low, with defaults very rare for investment grade issuers. We invest across a broad range of sectors and geographies, which helps ensure good diversification.
We don’t just focus on market timing and security selection. Instead, we also identify the big themes driving economies and use this analysis to help drive our selection, including decarbonization, the impact of geopolitical volatility, and the potential scenario of a transition of global economies from stagflation to stagnation.
Enhance risk-adjusted returns: Compared with other asset classes, EM Debt can behave differently under various market conditions. By adding EM Debt exposure, investors can potentially enhance risk-adjusted returns and enjoy the best of both worlds - risk diversification and potential for alpha.
No market or region can be viewed in isolation. That’s why we combine top-down macro analysis with bottom-up country research on issues like trade and international relations. We develop our macroeconomic outlook and incorporate robust linkages between developed and emerging market economies to better inform our global perspective.
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Given the relative volatility of the asset class, an asymmetric approach to risk management and budgeting can provide investors with an overall smoother investment experience over time. We look to reduce volatility throughout the emerging market cycle and maintain a low-tracking error and high volatility in risk-on periods as well as a high tracking error and low volatility in risk-off periods.
Connect with us for a tailored conversation on fixed income.
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When doves yell: Fed loudly signals a September rate cut
Minutes from the July FOMC meeting were surprisingly dovish, and Federal Reserve Chair Jay Powell suggested a likely policy shift in comments from Jackson Hole.
Six reasons why EM local debt could now provide an attractive entry point
Monetary easing around the world continues to boost prospects for emerging market (EM) local debt, in our view, as it unlocks idiosyncratic investment opportunities.
Asia Fixed Income Investment Outlook – Quarterly Update
Chris Lau and Norbert Ling from Invesco's Fixed Income team share their investment outlooks for Asia investment grade and high yield bonds for Q4 2024.
*Source: Invesco, as of March 31, 2024
