In the Overview, the Asia USD bond market has ballooned into a USD1.4trn market in recent years. We argue that the asset class is an essential part of a multi-asset portfolio, given its attractive riskreward and diversification benefit. Recent changes in the supply and demand landscape, as we detail in the report, are mostly favourable to Asian as well as US and EU investors. This hasn’t gone unnoticed by the smart money, as we have seen an increasing amount of funds flowing into the asset class lately. We study this asset class in detail through the lens of multi-asset strategy. We believe a scenario of a synchronised economic recovery in Asia that lowers volatility, led by China, is highly favourable to credit spreads, based on our two-factor model.