The trade turmoil under Trump has dragged down the U.S. and global stock markets, heightening fears of an economic recession. The market interprets Trump's actions as efforts to induce a slowdown in the economy, prompting the Federal Reserve to lower interest rates. With high national debt in the U.S., the policy space for the Trump administration is limited.

Experts believe that should a 'manufactured recession' occur combined with interest rate cuts, market interest rates could sharply decline, relieving the burden of interest payments for the U.S. government. Investment-grade bonds with a maturity of ten years or longer, according to Lin Yongxiang, the manager of the 00836B Yongfeng 10-Year and Above U.S. Dollar A-Class Corporate Bond ETF, have become a favorable asset amid increasing recession risks and a rate-sensitive environment.

• First advantage: A longer maturity increases sensitivity to interest rates, benefiting from rate decreases.
• Second advantage: Current yields on government bonds are relatively low compared to the beginning of the year, and high-rated corporate bonds can provide higher yields.
• Third advantage: Issuers of high-rated bonds are typically larger and more stable, making them better positioned to withstand recessionary pressures compared to non-investment-grade assets.

The fund includes a basket of quality corporate bonds spanning multiple industries including finance, technology, healthcare, and communications, all rated A-class. With an increased risk of recession in the U.S. leading to a rise in default risk among non-investment-grade debt, the debt servicing capacity of firms issuing investment-grade bonds remains stable, allowing them to better resist default risks in a downturn.

Historical data shows that high-rated bonds exhibit greater investment value in such environments. Thus, now is an opportune moment to invest in U.S. dollar investment-grade bond ETFs. In a backdrop of heightened economic uncertainty, investors are encouraged to prioritize allocating to 10-year and longer investment-grade bonds to capture the bullish debt market opportunities during a downturn.