IslamicFinance.de

Malaysia’s benchmark Islamic borrowing costs are seen rising to a record as global investors exit the nation’s government and corporate bonds at the fastest pace in three years. The yield has climbed 16 basis points to 4.20 percent since July 3, when a Wall Street Journal report into Prime Minister Najib Razak’s finances plunged the country into political turmoil. Manulife Asset Management Services Bhd. says the unprecedented 4.5 percent is in sight this year, compounded by falling commodity prices and a potential U.S. interest-rate increase. Pheim Asset Management Asia Bhd. also sees that level being reached as the ringgit slides.