Invest in the fast-growing bond market

UBS China High Yield Fund

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Attractive income potential in zero-interest-rate age

China is the second largest bond market globally. China's offshore bond market also offers investors enhanced diversification, liquidity, and broad investment opportunities with attractive yield. 

1. Attractive yields

China high yield bonds offer relatively attractive yields and a positive fundamental outlook. Longer term, we hold a positive outlook on the China high yield sector with the continued accommodative stance of central bank policies and sound credit fundamentals.

Asset class

Asset class

Yield (%)

Yield (%)

Asset class

China USD High Yield

Yield (%)

14.6

Asset class

Asia High Yield

Yield (%)

9.3

Asset class

USD High Yield

Yield (%)

4.2

Asset class

EUR High Yield

Yield (%)

3.6

2. Focus on total return, not just yield 

The Fund focuses on attractive risk adjusted returns and total return, not just yield. Through active management, dynamic risk positioning, and diligent security selection, the Fund seeks to generate attractive total returns throughout market cycles.

3. Attractive entry opportunity

Current China high yield spread levels are trading close to historic peaks since 2005 with a percentile rank of 92%1. The only periods when spreads traded wider than they are currently at, are during the 2008 Global Financial Crisis and the 2011 Sovereign Debt Crisis. We see an attractive entry point for China high yield to capture the spread compression opportunity relative to other opportunities in fixed income, whilst being cognizant of the risks of this asset class.

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