ONE CREDIT, THE Republic of Indonesia’s 30-year bond, aptly sums up the status of Asia’s debt market. It is trading at around 210 basis points over the equivalent US benchmark, so investors are faced with a choice: place funds at three-month Libor or buy 30-year paper from Indonesia and earn an extra 150 basis points for their trouble. It is a simple decision to make, of course, but investors are falling over each other to make the wrong choice.
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