Morgan Stanley Podcast: Asian Bonds Need a Bigger Map
In a new episode of 'Thoughts on the Market', Morgan Stanley's Head of Asia Credit Strategy, Kelvin Pan, discusses why traditional Asian bond investment universes are becoming constrained and what expanding to an APAC bond universe means for investors.
Morgan Stanley has released a new episode of its financial podcast 'Thoughts on the Market' titled 'Asian Bonds Need a Bigger Map'. Recorded in Hong Kong on October 13, 2026, and published on October 21, the episode features Kelvin Pan, Head of Asia Credit Strategy at Morgan Stanley.
Pan argues that while Asia-Pacific fundamentals remain strong, the traditional investment universe for Asian bonds faces increasing constraints. Since early 2023, US policy rates exceeding those in many Asian jurisdictions have reversed the environment supporting Asian USD credit, leading to shrinking supply and elevated valuations. Concurrently, assets in funds dedicated to Asian credit and high-yield debt have significantly declined from their 2021 peak.
To address this, Pan suggests the issue lies not with Asia itself but with how investors view it. He introduces the concept of 'APAC Bonds', which expands beyond traditional USD credit and emerging market local currency government bonds to include convertible bonds, local currency corporate bonds, and coverage of Japan and Australia. This broader map aims to help investors flexibly manage risk and return across different economic environments by combining diverse asset classes.