S&P reorganizes

Investing in funds that track fixed income benchmarks has gained popularity. An interest in local markets and fixed income markets overall has contributed to this segment, that is yet to boom in Asia.

Experts expect a possible revival of investor interest in China, which lost favour among US investors last year. Across APAC, consumer, manufacturing and industrials are sectors to watch.

The country's national treasurer explains the government's action plan to facilitate a sovereign rating upgrade to the coveted A status. Prioritising domestic debt fundraising over international and expanding its product mix to include sukuks and green bonds are part of the answer.

Authorities’ willingness to accept defaults could be on the rise as economy emerges from Covid-19 shock, but systemic risks are unlikely, according to ratings agency.