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Bulletin of Monetary Economics and Banking

Document Type

Article

Abstract

The objective of this paper is to test how market-determined local-, global- and USbasedfactors explain the behaviour of Indonesian credit spreads. Using a specificasset class of bonds issued in the international market by the Indonesian government,this paper provides evidence confirming the importance of major local and globalmacroeconomic variables in pricing risky debt issued by Indonesia. Using US dollar–denominated bonds ranging from shorter- to longer-maturity groups, this studyprovides insights into the role of these determinants in the pricing process. Giventhe implications for pricing and risk management, the evidence from this study isimportant for investors, policymakers, and issuers.

First Page

531

Last Page

550

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Australia

Affiliation

Deakin University

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