Following up on last Wednesday's "Genghis Bonds: Mongolia Floats Paper Cheaper than Spain".
From FT Alphaville:
Genghis bonds stumble
Oh dear, Mongolia’s new dollar bonds “tentatively nicknamed Genghis Bonds” (h/t Katie Martin) have been hit by some shocking, hard to predict, political instability.Regarding the rather dry "...shocking, hard to predict" bit, Mongolian markets are resiliant and strong like musk ox. See:
One of the members of Mongolia’s fragile coalition government has ordered its ministers to leave their posts, a move that has sent the country’s bonds into a tailspin and could threaten the passage of crucial legislation.The numbers had always been pretty dramatic with the $500m, five-year bond pushed out at 4.125 per cent yield and the larger 10-year $1bn at 5.125 per cent (Mongolia is not Spain is not x is not etc…)...MORE
Mongolian bonds plunged $7-$8 on Wednesday on the news that the populist Mongolian People’s Revolutionary Party (MPRP) was no longer prepared to work with the free-market Democratic Party, the country’s biggest party, following June elections.
Khan Resources jumps 20% despite Mongolian riots