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 potential downgrade is mentioned that could impact the nation's sovereign credit?

What factors are prompting some fund managers to consider Malaysian bonds as a buy opportunity?