1MDB Scandal Turns Bond Funds Against Malaysia

The video discusses how bond managers are adopting a cautious approach due to fiscal and political uncertainties, particularly in Malaysia. Concerns include the budget deficit, political changes, and potential credit downgrades. Despite these challenges, some fund managers see investment opportunities in Malaysian bonds, citing a stable economy and potential government control over the budget deficit.

What is causing bond fund managers to become more cautious?

• Improving economic conditions

• Fiscal and political uncertainties

• Rising interest rates

• Decreasing inflation rates

What is a major concern regarding Malaysian debt?

• Rising GDP

• Political stability

• Increasing foreign investments

• Budget deficit and political uncertainties

How much would wiping off the $1 trillion debt cost in terms of Malaysia's GDP?

• 4% of GDP

• 3% of GDP

• 2% of GDP

• 1% of GDP

Which fund managers see the current situation as a buying opportunity?

• PIMCO

• BNY Mellon

• A London-based money manager

• Investec

What positive aspect of the Malaysian economy is highlighted by some fund managers?

• High inflation rates

• Stable economic growth

• Increasing unemployment

• Political instability