Outlook upgrade a win for bonds

Centre for Market Education (CME) chief executive officer Carmelo Ferlito said the new outlook by S&P Global Ratings may ease the bond sell-off. “But, again, this (upgrade) would create more debt, which means more instability and more inflation,” he told StarBiz.

PETALING JAYA: For the Malaysian bond market, which has suffered a deep sell-off in the first half of June, the recent upgrade of the country’s credit ratings outlook is a timely boost to sentiment.

It remains to be seen how significant the impact of the upgrade would be, but the market has in general welcomed S&P Global Ratings’ move to revise Malaysia’s outlook to “stable”.