Baillie Gifford's joint head of Asian fixed income, Omar Slim, along with Sun Daohan and their team, have shared their latest views on the Asian high-yield bond market. Baillie Gifford stated that while there have been frequent bond defaults in the Asian bond market in recent years, the default rate for Asian high-yield bonds (excluding Chinese real estate) has consistently been lower than similar bonds in the US. Looking ahead for the next two years, with a stable macroeconomic environment in Asia, companies having access to low-cost local financing, and a relatively even distribution of bond maturity dates, it is expected that this trend will continue. Furthermore, the Asian high-yield bond market has become more diversified, with yields remaining high compared to historical averages and high-yield markets in developed countries, currently at a high level in a ten-year historical range, approaching the 90th percentile. Asian high-yield bonds are one of the few market segments where there is still room for yield spread compression. Regarding the Chinese market, Baillie Gifford believes that recent measures to support the real estate market will help reduce economic risks, but further policy support is needed to stabilize the housing market. The outlook for this industry remains cautious, with the recommendation for investors to carefully select and focus on individual issuers with high-quality leasing portfolios. Apart from real estate, Baillie Gifford sees potential in certain industrial companies in China, which will benefit from the central government's growth stabilization policies and loose monetary policy stance, making it easier for them to access low-cost funding. As for regions outside mainland China, the overall macroeconomic environment in Asia remains stable. Baillie Gifford continues to be optimistic about the Macau gaming industry, as the industry fundamentals are steadily improving post-pandemic, and also sees potential in certain Indian companies that are likely to benefit from the country's strong economic growth.