You have the credit conference that's actually happening for you guys in the next two days or so. What do you think is over the
top of the agenda this time. Well I think people as much as the market has been very choppy
over the last couple months. I think people still have money to put to work. Nobody does that equities. You have to find a place
to park. And this is really the gist of the whole conference that you know trying to explore various opportunity. I think
you're talking about the U.S. dollar bond market all going out from that call market going into a school days without looking
at a distressed credit looking at private credit or looking at the
credit. This is the kind of opportunity we are exploring. And this is a you know an exciting time to showcase what J.P. Morgan
have to offer. Okay so. I mean it's something a great year for your space as it
were. Are you seeing any light at the end of the tunnel. Yeah. Well you're right to see. I think Asia credit market has a very
choppy start for the year year to date. We had lost about 9 percent and this is one of the worst years since the global
financial crisis. We have not seen the kind of spread widening and the Treasury sell off. We are talking about hiring 50 basis
point rise in the seven year treasury and then another 39 basis point. Why didn't any credit spreads. This is a kind of a double
whammy for us but for the market. So the last time we see that kind of high single digit losses is back in 2000. It's a tool.
It went to Jackie J.B. Market Asia Credit. Lex lost about 10 percent. So we are inching close to that kind of level. Yeah but
that has to do with China to rise. And what we're seeing the high yield market and we can do as it spreads widen there. I'm
just wondering what is your exposure now to the property space in China and beyond. Yeah. Well China property definitely is.
That is the topic people all discuss about ending. What are we going to do with the space based on the current valuation. I
think a lot of most of the China property bond are treating a distressed level. Some of them anything that have distressed
they are retreating 15 to 20 cents a level. So the question is that what is a recovery value.
I think we are hopeful the recovery value is definitely going to be slightly higher than that.
As long as you know the company go through the proper process. Yes I think a shop creditor is somewhat neater. But as long as
they are treated fairly I think the recovery value should be better than what our current trading at 15 to 20 cents sensible
level. This is where you mentioned distressed distressed debt. I mean you look at distressed debt in real estate in China. Is it
something you just think is perhaps you'd be on a hiding to nothing. And I suppose you have to be prepared for near-term
volatility and more. Here's a where else would you look for opportunities in that space. Yeah well I think beside the trend
to property I think that people do looking for outside of China property space to look for their persecution in the higher space
in it as a few you know you can see it kind of sweet spot for investor. Either you're talking about commodity names or
renewable in India Indonesia. These are the space that people kind of generally are looking at reassessing it. And this is a
space that people are willing to put money for. And this is the alternative to what you have in China property. So it does is
the space that people are looking at. But even in the investment Christi for example I think right now the investment has sort of
quite frankly because of the of the rainfall. So now you can get seeing a closer to a 4 and 1/2 percent and
triple B is going to be closer to 5 to 6 percent. I think also a level that's stocked it looks interesting. Also yes there will
be some shot him. What did he keep. But I think the valley should have reached a level that people started to relook at the
whole space and a different religion parameter. How do you factor in the dollar dynamics given that there still
are questions on greenback dominance. Is that still reigning high. Do you just focus on local currency or you focus on the
dollar bond market now. Yes our focus is really on the U.S. dollar bond market. This is a space I think to attract a lot of
attention. A local currency market did. I mean you can already see it as lose some shine but I presume that is more you know
you can see is there is a temporary thing in the structure in the Russia term. I think eventually people have to start to look
and look at currency and DAX will eventually come back in the near term. Probably people are focusing a lot more to US dollar
product for sure. But eventually I would still expect that people without also relook at their local currency market once
they'd we stabilize somewhat. Yeah. Decision which is good. It must be. This is Jill your clients here. What's their number one
concern and what do you tell them. Yeah well there's many constant I think we have. You have
highlighted a few. We discuss a few. One is that the slowdown in the Chinese economy that is still something that we have to deal
with in the near term where we see the bottom. This is where one question and the other one is probably also inflation and how
this inflation is playing out. And we've seen the inflation and the other parts also in the broader context what is happening to
the global economy. I'll be seeing us. We see a hard landing a soft landing dose. So question that people are thinking about.
Yeah. So another thing is also for Asia. We have to deal with deer racing default rate. That is still something they're not
behind. We still expect a few default here and there. But overall we see that there are still some debt down there as
well. You see you know relish and have Japan you know technical have improved quite a fair bit because the supply had moderated
quite a bit. So.