Malaysia’s dollar Islamic bonds are giving twice the returns of those in Indonesia this year as investors seek investment-grade assets amid unrest in the Middle East and Europe’s escalating debt woes.
Malaysia’s 3.928 per cent sukuk maturing in June 2015 gained 1.9 per cent this year through April 19, according to prices from Royal Bank of Scotland Group. Indonesia’s 8.8 per cent note due April 2014 climbed 0.8 per cent, RBS data show. Malaysia is rated A- by Standard & Poor’s, the fourth-lowest investment level, while Indonesia is rated BB+, one level short of the top grades. (full story)
