The year 2021 has been quite eventful for Asian Credit Markets including the Investment Grade Corporates. Positive events such as removal of US Executive Order risk on certain Chinese SOEs and positive sovereign ratings actions, were juxtaposed with heightened regulatory concerns on historically defensive sectors such as China Technology and Macau Gaming. Nevertheless, Asian IG Corporates still managed to achieve slightly positive spread performance in 2021ytd. Heading into 2022, we believe Asian IG Corporates could grind modestly tighter as fundamentals should modestly improve for most sectors while valuations look reasonable, especially when compared to US IG Corporates. We pencil in low single-digit (+1.0%) total returns for 2022, driven by small spread (20bp) tightening but offset by higher USTs. In terms of recommendations, we believe China IG Corporates, select Indian corporates and high step-up perps may offer some alpha potential for the year and, duration-wise, we prefer short end to belly of the JACI IG curve, given the rising rates view, going into longer dated bonds only if we expect material credit curve flattening .