Indian assets are more promising than those of Indonesia, thanks to their higher compensation for risk, according to data compiled by Bloomberg. The Indian rupee offers a carry-to-risk ratio of 2.8 compared with just 0.5 for Indonesia's rupiah, while the Indian central bank's intervention and the highest bond yields among major Asian nations are burnishing the appeal of its assets. Finally, foreign funds are locking in high yields in Indian debt, with the country’s one-year implied volatility slumping to a 10-year low of 5.21%. Experts therefore suggest investors are better off opting for Indian assets.
