Asia Corporate Bonds Top US Peers in Bet on Narrow Tariff Impact

Spreads on corporate bonds from higher-rated Asian firms are performing better than their US peers so far in 2025, as investors bet that President Donald Trump’s proposed tariffs may have less impact in the region than initially feared.

The yield premium investors demand for holding high-grade Asian dollar notes — known as the credit spread — has narrowed by 11 basis points to 91 basis points this year. By contrast, US corporate bond spreads widened two basis points to 82 basis points in the period, Bloomberg indexes show.

The tariff impact “on Asia will likely be manageable and limited to ...