Article Title

THE CREDIT RISK DYNAMICS OF INTERNATIONAL BONDS: THE INDONESIAN CASE

Authors

Kannan Sivananthan Thuraisamy, Deakin University - AustraliaFollow

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.

Recommended Citation

Thuraisamy, Kannan Sivananthan (2019) "THE CREDIT RISK DYNAMICS OF INTERNATIONAL BONDS: THE INDONESIAN CASE," Bulletin of Monetary Economics and Banking: Vol. 21: No. 0, Article 2.
DOI: https://doi.org/10.21098/bemp.v0i0.980
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss0/2

First Page

531

Last Page

550