Asia Tech & New Economy

Asian technology and communications issuers.

The Asian technology and communications sector currently presents a compelling landscape for fixedincome investors seeking to capture elevated yields amidst a shifting macroeconomic backdrop. The theme is dominated by highconviction credit opportunities that reflect the ongoing capital requirements and strategic pivots of major regional players. By focusing on established issuers with significant market footprints, investors can access a range of riskadjusted returns that stand out against broader emerging market benchmarks. Current valuations highlight a distinct bifurcation in the market, where investors are being compensated with substantial premiums for duration and credit risk. SoftBank’s suite of USDdenominated notes, such as the 9.75% 2034 and 9.25% 2032 issues, are currently trading near par with yields hovering between 9.2% and 9.8%, offering a robust income profile for BB+ rated paper. Meanwhile, issuers like PCCW and Telkom Malaysia demonstrate the sector's breadth, with the PCCW 2030 note offering a notable yield of 19.2% and Telkom Malaysia’s 2026 maturity providing a 15.7% yield, underscoring the potential for significant carry in the current environment.