Steven Oh, the Global Head of Credit and Fixed Income at PIMCO, released the mid-year fixed income outlook for 2024. In it, he pointed out that in the second half of 2024, despite seemingly high market valuations, investors do not need to be overly conservative. Instead, investors should maintain their bond investment strategy from the beginning of the year, focusing on diversifying risks and seeking investment opportunities beyond cash, such as emerging market corporate credit with potential geographical advantages. Specifically, leverage loan yields are still in the range of 9%-10%, and remain attractive after risk adjustments, especially for B and B+ rated bonds. In terms of mortgage-backed securities, given tightening valuations and downside risks, PIMCO leans towards the senior portion of the capital structure and takes advantage of new issue yields higher than those in the secondary market. For high yield bonds, although the spread for CCC and below rated bonds has increased, many issuers are facing difficulties, so PIMCO believes it is not advisable to increase holdings of these bonds at the moment. The Asian high yield market, while under pressure, still offers spread advantages. Regarding investment-grade bonds, PIMCO believes that long-term credit spreads are at extremely narrow levels, but mid-term credit can still provide reasonable returns. Mortgage-backed securities are relatively cheaper compared to corporate securities, with technical factors that are difficult to reverse in the short term.