High Yield Bonds Remain a Viable Source of Funding for Indonesian Corporates
Despite the recent turmoil in the high yield bond market, they continued to remain a viable source of funding for Indonesian corporates in the near to mid-term. The Indonesian corporates are turning to bond market to diversify their funding sources and especially due to ongoing monetary tightening in the country that will drive up bank lending rates. Bank Indonesia raised its benchmark interest rate for the first time since 2011 by 25bps to 6.
Understanding Callable Bonds
Callable bonds are bonds that can be redeemed by the issuer at a pre-determined schedule at a pre-determined price. It is an option available to the issuer. The price at which bonds can be redeemed by the issuer is the call price.
European Bond Yields – 2013 Update
The cost of borrowing for companies below investment grade or junk status has fallen to historically low levels on account of additional liquidity flooded by the central banks of the developed economies. This is indicated in the current yields of Bank of America Merrill Lynch High Yield Index at 4.6%.
Get Rich and Stay Rich
Anyone living in the United States, holding a steady job, can become rich. Any family willing to view life across several generations can become ultra-rich and many, including Warren Buffett, have proven it. A few families here in the West, and a growing number across Asia and the Middle-East are even considered mega-rich. Sadly, only a few families have individuals with the discipline or selflessness to become rich.