Malaysian bonds are facing increased vulnerability to outflows as local yields rise alongside US Treasuries , following Donald Trump’s election win. Analysts suggest this trend could continue, particularly given the sharp ringgit depreciation against a strengthening dollar. Malaysian bonds saw net outflows of RM11.2 billion (US$2.6 billion) last month — the largest since March 2020 — according to Bank Negara Malaysia (BNM) data. This outflow, coupled with a sell-off in US Treasuries and a weakening ringgit, is pressuring yields higher. Notably, the 90-day correlation between Malaysian bonds and the ringgit has risen to 0.63, signaling that as the ringgit weakens, bond yields tend to rise. “The election outcome suggests continued dollar strength ,” said Philip McNicholas, Asia sovereign strategist at Robeco Group in Singapore. “With Treasury yields steepening, there’s a risk of further foreign withdrawal from emerging-market (EM) assets , especially Malaysia’s lower-yielding bonds.”
Blackstone Inc has raised about US$22 billion (RM96.21 billion) in capital for a new direct lending fund aimed at institutional investors, according to a statement. This fund features a hybrid structure between drawdown funds—where investors commit to locking up capital for a set period—and evergreen funds, which allow investors to buy in and out periodically. The fund focuses on large-cap and middle-market lending transactions.
This latest fund adds to Blackstone’s well-known Blackstone Private Credit Fund (BCRED), a US$62 billion business development company that targets retail investors. Blackstone’s credit business also handles funds from insurance companies, pensions, and sovereign wealth funds.
Private credit firms are in a race to amass significant capital to remain competitive and make larger deals. For instance, Ares Management Corp recently raised US$34 billion for its own direct lending fund, while Goldman Sachs has increased its fundraising goals in response to growing demand in credit markets.
Blackstone’s new fund brings its global direct lending platform to over US$123 billion as of the third quarter, contributing to the company’s US$432 billion in credit assets under management through Sept 30.
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