Investors should be looking to boost exposure to yield plays as central banks in Europe and the U.S. signal interest rates aren't heading higher soon, according to HSBC's private bank.
"With long term interest rates lower for longer in Europe and the U.S., we think there is some scope to add credit markets exposure" and dividend yield, Benjamin Pedley, head of investment strategy for Asia at HSBC's private bank told CNBC in an interview.
The U.S. Federal Reserve surprised markets in September by leaving interest rates unchanged, spurring many analysts to move their expectations for the central bank's first hike in nine years into 2016. Last week, the European Central Bank left its key interest rates unchanged at 0.05 percent, but at the monetary policy meeting's press conference, ECB President Mario Draghi suggested the bank's quantitative easing (QE) program could be extended beyond September 2016.
Bond prices in developed markets have rallied in recent sessions following the Fed's inaction, coupled with the prospect of further monetary stimulus by the ECB, with investors for some short-dated sovereign debt in Europe now being charged for the privilege of parking their money as yields are in negative territory.