Ren Goh, the Fixed Income Macro and Thematic Manager at Han Yi Investment, a subsidiary of the Baocheng Group, recently published an article discussing the investment value of Asian bonds and their role in income-oriented investment portfolios. The article emphasizes that Asian bonds have shown relative resilience so far, with the J.P. Morgan Asia Credit Index falling by less than 1% this year. This resilience is partly due to the continuous improvement of Asia's long-term macroeconomic fundamentals. Emerging Asian economies have stable fiscal discipline, well-controlled inflation, maintained policy credibility, and positive real interest rates. External balances are healthier, and domestic savings continue to rise. In the recent Middle East conflict, many Asian economies' current account surpluses provide a buffer to absorb higher energy costs; at the same time, some Asian regions continue to benefit from strong global demand for AI-related exports. Although geopolitical tensions may support the US dollar in the short term, multiple indicators show that the US dollar is overvalued, including the real effective exchange rate. The US Net International Investment Position (NIIP) is also at its most negative level since 1975, indicating that foreign claims on US assets far exceed US claims on foreign assets. If foreign investors and central banks reassess the sustainability of US finances and seek to diversify their investments and reserves away from US dollar assets, the US dollar will face long-term downward pressure. Goh states that Asian USD bonds have shown strong resilience during market pressure periods. During the 2022 global rate and credit sell-off, aggressive monetary tightening led to significant losses in traditional defensive assets simultaneously, while Asian USD bonds showed relatively stable performance. In the recent Iran conflict, Asian investment-grade bonds outperformed US and European investment-grade bonds within the month. The correlation between Asian credit and the global bond market significantly decreases during periods of increased pressure, providing a hedge for investment portfolios during global risk aversion stages. Overall, Han Yi Investment believes that Asian bonds not only provide an attractive source of income but are also suitable for income-oriented investment portfolios given their low correlation and robust fundamentals. In the context of geopolitical uncertainty and potential weakness of the US dollar, the diversification value of Asian bonds is more prominent. Investors can enhance income needs and portfolio stability through allocation to Asian bonds, especially in an environment of heightened global market volatility.