HALISTER1: Indonesia CDS Reflects S&P Rating Upgrade Expectations: ANZ

Indonesia CDS Reflects S&P Rating Upgrade Expectations: ANZ

(Bloomberg) -- Indonesia debt insurance cost relative to Turkey’s reflects expectations S&P will upgrade the Southeast Asian nation to investment grade, analyst Danny Suwanapruti at Australia & New Zealand Banking Group writes in note.
  • Five-yr Indonesia CDS around 185bps, compared with similar- rated Turkey’s 266bps, Singapore-based Suwanapruti says
  • Indonesian bond mkt has seen about $5b of inflows this yr, with sentiment helped by policy reforms such as a tax amnesty bill and new monetary policy regime
  • Says been bullish on Indonesian debt all yr
  • ANZ maintains long 15-yr IDR bond call with overweight duration recommendation, driven by domestic factors
  • Indonesia’s 15-yr govt bond yld fell 98bps this yr to 7.99%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Danny Suwanapruti (Australia & New Zealand Banking Group Ltd)

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