Oil Slump Now Biggest Risk for Malaysia Debt as 1MDB Mess Fixed
- Fitch warns 2016 deficit may exceed prime minister's target
- Default risk heads for biggest quarterly drop in four years
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As Malaysia’s debt-ridden state investment company finds buyers for its assets, investors say slumping oil is the biggest threat still hanging over the nation’s finances.
Sovereign default risk is headed for the biggest quarterly drop in four years as 1Malaysia Development Bhd. announced $2.3 billion of asset sales. Yet there are signs of caution among investors with 10-year government bond yields at a three-month high relative to three-year notes and the ringgit remaining Asia’s worst performer in 2015.