JAKARTA. The Government Securities (SBN) series SBR007 will be offered soon. Market analysts expect the coupon for the instrument will be low, in line with the downward trend in yields on existing bonds.
Capital market observer, Anil Kumar, said that in theory, SBR007 coupon must be lower than the previous series. Because, in the past month, yield of SUN has experienced a downward trend.
On Monday (8/7), the yield of the 10-year benchmark SUN series listed on the Indonesia Bond Pricing Agency is at 7.20%. Even the yield had touched this year's lowest level of 7.18% last week.
According to Anil, the ideal coupon for SBR007 is around 7.5%. This figure is considered to be still quite attractive, even though it was lower than the coupon of SBR006 released last April at 7.95%. At that level, retail investors might still purchase SBR007 because in the next one to two years, the benchmark interest rate has the potential to decline.
The Head of Fixed Income Fund Manager of Prospera Asset Management Eric Sutedja has the same opinion, that the coupon for SBR007 will be lower than other series. He also estimated that the ideal initial coupon for SBR007 was around 7.75%.
Even if the government later sets a coupon lower than that number, he hopes that the initial SBR007 coupon will not drop below the 7% level. (AM/AR)