Mongolian sovereign USD-bonds fall after Cabinet collapse
Mongolia’s sovereign USD bonds began to fall on September 8, after the Cabinet of Acting Prime Minister J.Erdenebat collapsed.
The 2022 issue fell 0.462 cents to 97.538 cents - the biggest decline since July - according to Tradeweb data. The 2021 bond lost 0.270 cents to trade at 117.729 cents.
In September, the Khuraldai USD bond was the last bond to be on the rise, reaching 114 USD. After Parliament’s recent decision to oust Cabinet for incompetency, the Mongolian USD bonds have been in free fall, with Bloomberg reporting a 50 percent dip.
In contrast, after the 2017 presidential election, the bonds had positive signs due to the possibility of a more stable government.
All of the government bonds have decreased in value, such as the 2022 Chinggis Bond and the Khuraldai Bond. What has been mostly unaffected is the Chinggis Bond that is maturing this upcoming January 2018. What this entails is that many investors want the payout of the bond closest to maturity but are uncertain about upcoming bonds.