• bond market

    • bond market
    • bond market
      • 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 ...
      • June-2019: Corporate Bond Market
        We expect the positive trend in the government bond market to boost the performance of the corporate bond market. Corporate bond yields continued to fall, heading to their lowest point in the past three years. As of July 16, 2019, yields for the three-year and five-year tenored AAA-rated corporate bonds were 7.407% and 7.777%, respectively, dropping by 183 bps and 147 bps YtD. More detail ...
      • More ...