Original title: BlackRock Favors Indonesia Long Bonds, Unfazed by Protests
BlackRock Inc. remains a fan of long-dated Indonesian government bonds, saying the high-yield debt offers enough risk compensation in the face of local political instability. The world’s largest asset manager has recently increased holdings of such bonds due in 10 to 15 years, shifting positions from shorter tenors, said Navin Saigal , BlackRock’s head of fundamental fixed income for Asia Pacific. The additions resulted from the longer-tenor notes’ milder reaction to Bank Indonesia’s surprise interest rate cut and the Federal Reserve’s dovish rhetoric last month, he said.