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Vietnam’s Dollar Bonds Defy Moody’s Downgrade: Southeast Asia

Vietnam’s dollar bonds are defying a credit downgrade by Moody’s Investors Service as efforts by the government to stabilize the economy since 2011 show progress.

The average yield on Vietnamese debt fell to a record low of 4.06 percent on Oct. 10, according to JPMorgan Chase & Co.’s EMBI Global index, even after Moody’s said Sept. 28 there was an “elevated risk” that the government may have to bear the cost of recapitalizing banks. Pictet Asset Management plans to add to its holdings of the nation’s securities and Aberdeen Asset Management Plc said it will maintain its investments.