Indonesia Company Bonds Face Volatility on Poll Dispute: Lucror
2014-07-10 03:41:18.726 GMT
By David Yong
July 10 (Bloomberg) -- July’s outperformance vs regional markets may have been built on expectation of a Joko Widodo victory, Lucror Analytics says in report today
* Indonesia total return +1.16% mtd vs +0.4% for China and +0.3% for Asia: JPMorgan Chase indexes
* Investors face uncertainty and volatility if election outcome is challenged in courts: Lucror
* Buoyant trading this week in Indonesian high-yield bonds “surprising” given political backdrop: Lucror
* Pakuwon Jati’s July 2019 bonds are expensive relative to Country Garden’s May 2019 notes, though both trade at about similar spread to Treasuries: Lucror
* Pakuwon is a smaller co. with debt restructuring history while Cogard has track record of pre-funding maturities even in adverse market conditions, Lucror head of Asia Charles Macgregor says in phone interview