This performance supports our thoughts in the SGD Credit Outlook 1H2025, which suggests that SGD Credit will remain relevant and a competitive alternative to Asiadollar
Is Singapore dollar (SGD) exceptionalism a momentary momentum or an enduring trend? The SGD credit market has continued to demonstrate relative resilience and stability in 1H2025, standing out as an alternative safe haven amid global volatility. This exceptionalism was underpinned by zero defaults, solid domestic demand, the rising momentum of de-dollarisation and resilient credit fundamentals of SGD credit issuers.
Despite elevated geopolitical tensions and tariff-related uncertainties, the SGD credit market experienced limited direct impact with y-o-y returns of over 7% as of June 25, comparable to the returns seen in 2023. In contrast, total returns for Asiadollar investment-grade and high-yield were around 6% and 8%, respectively, over the same period.
