Politics
Worst Indonesian Credit Volatility in Years Imperils Debt Boom
Key Points
Worst Indonesian Credit Volatility in Years Imperils Debt Boom The highest volatility in rupiah corporate bonds in four years is threatening to dent record issuance by companies in Southeast Asia’s largest economy at a time when government policy swings have hurt international investor confidence in Indonesian assets. The 30-day annualized volatility of top-rated Indonesian corporate bonds climbed to 23% this week, the highest since mid-2022, after President Prabowo Subianto’s...
Worst Indonesian Credit Volatility in Years Imperils Debt Boom
The highest volatility in rupiah corporate bonds in four years is threatening to dent record issuance by companies in Southeast Asia’s largest economy at a time when government policy swings have hurt international investor confidence in Indonesian assets.
The 30-day annualized volatility of top-rated Indonesian corporate bonds climbed to 23% this week, the highest since mid-2022, after President Prabowo Subianto’s interventionist policies triggered a selloff in the nation’s assets. While markets including Indonesian bonds rallied Monday after an interim agreement by the US and Iran to reopen the Strait of Hormuz, risks persist.