| Bonds of 1Malaysia Development Bhd have surged despite broadening investigations into the state investment fund's activities, as investors bet on the strength of its backers. International Petroleum Investment, Abu Dhabi's sovereign wealth fund, paid the coupon on 1MDB's US$1.75 billion of October 2022 notes as the debt's co-guarantor, days after a default in April.
JPMorgan Chase & Co said the debt could rally further to bring its yield premium closer to that of IPIC. Actively traded 1MDB bonds had an extra yield of 220 basis points more than US Treasuries on Oct 14, compared with 101 for IPIC.........................................Full Article: Source
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