Question - Sovereign bond - Yield - Price - Conundrum, help needed
We have 2 sovereign bonds issued by 2 different countries in the emerging markets space. Both bonds are issued in USD, and have equal maturity. One country has Moody's/S&P credit rating significantly higher than that of the second country. However, the bonds for the country with lower ratings are trading much lower yields (I am talking at 200-250 b.p.).
Can anyone list/suggest any reasons that could be behind such pricing anomaly? Both are plain-vanilla bonds that have no call/put provisions.
I will be very grateful for any input by you guys.
bump
Quia quisquam nesciunt omnis saepe deserunt aut. Velit nostrum sit facere dignissimos. Nobis voluptatem in expedita maxime laudantium. Ea laboriosam vero nemo ducimus culpa debitis repellendus autem. Modi laborum ut magnam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...