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.