• bond market

    • bond market
    • bond market
      • April-2020: The Countercyclical Policy Effect on the
        PEFINDO is of the view that soon after the World Health Organization (WHO) declared COVID-19 a pandemic on March 11, the global financial market rapidly moved into unprecedented territory. The yield on Indonesia’s 10-year government bond jumped 140 basis points (bps) from 6.97% on March 11 to 8.37% on March 24. Pressure further increased when global oil prices tumbled below zero for the first time in history. Luckily, the countercyclical policy response with ultra loose monetary policy and fiscal stimuli from many countries, including Indonesia, gives rise to expectations that economic conditions would soon ease and economies will start to recover. More detail ...
      • February-2020: Yields Lower But Prefer to Owe Abroad
        Before they began crawling up with foreign investor capital outflows, yields dropped quite significantly at the beginning of this year. But a low yield does not necessarily encourage the issuance of corporate debt securities in the domestic market. According to Bloomberg data, the effective yield of three-year and five-year tenor corporate bonds dropped by 62 bps and 30 bps year-to-date, respectively, to 6.728% and 7.242% as of March 2, 2020. More detail ...
      • December-2019: Although corporate bond yields have fallen, corporate debt coupons are still resistant to going down to a comparable rate.
        We see this because the market is not liquid and demand is smaller than the government bond market. Many institutional investors still favor the government debt market; as a result they still have high returns to absorb the corporate debt. They usually also buy and hold bonds until maturity rather than transacting them for capital gains. More detail ...
      • October-2019: Corporate Bonds
        We see the issuance of debt securities as increasingly lively toward the close of 2019. As of November 27, 2019, the issuance for the year totaled IDR129.4 trillion, and for the full year of 2019 it is will exceed the previous year’s total of IDR132.4 trillion. More detail ...
      • August-2019: Corporate Bonds
        We expect issuance costs to be lower in the near term. Lower interest rates and benchmark yields are catalysts to reduce funding costs in the next few months. Based on IBPA data, corporate bond yields for major tenors, three years and five years, closed at 7,698% and 7,940% as of September 26, 2019, down 153bps and 131bps, respectively. More detail ...
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