The Worst Asia Junk Bond Shows How Rapidly Fortunes Can Turn

Investors on a call in July with distressed Indonesia textile firm PT Delta Merlin Dunia Tekstil were confounded -- how could the company’s fortunes have turned so fast? They’re still searching for answers, in a case that’s revived concerns about a lack of transparency in corners of Asia’s credit markets, Bloomberg News reported. The saga has also highlighted risks of more scares ahead as the trade war and mounting geopolitical concerns reverse a rally in junk debt. Delta Merlin’s dollar bonds have suffered a stunning slump of 85 cents to 15 cents since being sold just in March, making them the worst-performing junk notes in Asia this year. It’s rare for companies to miss debt payments shortly after issuing securities, but that’s just what happened in Delta Merlin’s case. Read more