Malaysia's 1MDB – The Plot Thickens

Malaysia’s 1MDB – The Plot Thickens by firehorsecaper, iBankCoin

I last wrote about Malaysia and 1MDB’s travails in November 2015, in my very first blog post for iBC. The Malaysian Ringgit has rallied from the Q4 2015 extremes, but overall times are, if anything, more uncertain for Malaysia. For a primer, a good recap:

Given that 1MDB has now officially defaulted on a $50mm interest payment this week (Monday was the official deadline) on a 5.75% coupon US$1.75bln bond issue , I thought it might be a good time for an update. In bond investing, sometimes a law degree can prove to have more utility than a CFA charter.

In this instance, bond investors are caught in a serious Malaysian...