S'pore junk bonds best performer in region
Its US dollar notes have gained 7.9% as private banks seek haven in more developed markets
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INVESTORS in junk bond earned twice as much in Singapore as they did in Indonesia this year as private banks sought haven in more developed markets.
US dollar notes from the island have gained 7.9 per cent so far this year, the best among regional peers, according to a Bank of America Merrill Lynch index. In Indonesia, South-east Asia's largest high-yield market, they gained just 3.2 per cent as PT Berau Coal Energy this month took the nation's default tally to more than US$3 billion over the past seven years.
Singapore speculative-grade notes are poised for their best year since 2012 as debt profiles improve and local millionaires prefer the comfort of a home market that boasts an AAA sovereign rating. The debt has proved resilient to wider turmoil in the region, as missed obligations rise in Indonesia and Malaysia's prime minister is caught in a state investment fund scandal.
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