Business Standard

In high-yield revival, global funds prefer Indonesia over India

The archipelago's debt is more attractive due to a superior fiscal outlook and the greater potential for currency strength

Risk assets largely rallied across the board in April and May as sentiment rebounded from coronavirus sell-off
Premium

Risk assets largely rallied across the board in April and May as sentiment rebounded from coronavirus sell-off

Lilian Karunungan & Kartik Goyal | Bloomberg Mumbai
Indonesian bonds appear more promising than India’s in a contest between Asia’s high-yield heavyweights, according to two of the world’s biggest investment funds.
 
The archipelago’s debt is more attractive due to a superior fiscal outlook and the greater potential for currency strength, says JPMorgan Asset Management. Indonesia’s bonds also have more upside than India’s after suffering more heavily in the virus sell-off, according to BNP Paribas Asset Management.
“We favour Indonesian debt as fiscal challenges are less severe there,” said Julio Callegari, lead fund manager for

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 24 2020 | 12:50 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com