Malaysia’s High Real Yields Mean Inflows Beat Peers
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Global funds pumped more cash into Malaysia’s sovereign debt than Indonesian or Thai bonds for a fourth year in 2012, lured by the highest real yields and the safest credit rating of the region’s three-biggest economies.
Foreign ownership of the local-currency notes rose by $8.4 billion in the first 11 months, compared with a full-year increase of $4.9 billion in Indonesia and $6.6 billion in Thailand, according to official figures. Malaysia is rated A3 by Moody’s Investors Service, three levels above Indonesia and one step more than Thailand, while its 10-year bonds pay 2.3 percent after accounting for inflation, versus 0.9 percent and 0.1 percent for its respective peers.