In the current high interest rate environment, bonds provide a good opportunity to lock in decent yields at elevated rates. With a heightened level of uncertainty amid geopolitical tensions, we prefer short duration, high quality fixed income to lower our interest rates and credit quality risk. As the banking crisis has been contained without systematic risk, we do not see major credit risk for corporate bonds in 2H 2023.
Read the full update by Chu Toh Chieh, Senior Fund Manager here.