

U.S.-China tensions escalated this week due to both countries' implementation of tariffs. Despite tariffs, Nikko Asset Management believes in a strong outlook for Asian bonds this year based on strong fundamentals, monetary easing, and supportive policies.

2025 brings with it a number of likely challenges for the global market. Investors looking for contrarian opportunity need look no further than the Asia high yield bond market and the KraneShares Asia Pacific High Income USD Bond ETF (KHYB).

With the U.S. Fed cutting rates, the fixed income outlook for many U.S. investors may be changing. Yields on cash and somewhat safer offerings may not be able to offer as much upside.

Looking at your fixed income options? With rate cuts on the horizon for U.S. investors, it may be worth revisiting the available options.

High yield or junk bonds carry added risk. Hence the higher yields.

When it comes to junk-rated corporate debt and related ETFs, many advisors and investors are content to stick with domestic fare, thinking high yield corporates issued by ex-U.S. firms carry added risk. Among individual issues, there are examples of Asia high-yield corporates that are riskier than domestic equivalents.

It's been a raucous past year for fixed income investors. Following years of quiet for rate markets, the Fed's rapid rate hikes, and subsequent signals about rate cuts, have reinvigorated fixed income investing.

Institutional investors hold significant sway in global markets, often moving large amounts of assets in single moves. As such, knowing where institutionals are going next can be a valuable investing datapoint for other investors and advisors.
SEC filings for KHYB aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.