What products are investors interested in lately? Let’s explore the investment opportunities in bonds today.
📃 What makes it special?
Last month, the Government Bond Index (GBI) decreased by 11.24% compared to the previous month, totaling $4.9 billion. Additionally, inflation, which was at 5.1% in June of last year, has risen to 9%. In other words, the external economic environment is unstable, and during periods of high inflation volatility, investing in bonds becomes a lower-risk, steady-return investment option. So, what bond investment choices are available?
🏛️ Government Bonds: Currently, there are four active government bonds. The maturity dates range from April 2026 to July 2031. Of these, the “Mongolia 31” bond offers the highest yield at 6.82%. However, there are discussions about the government issuing new bonds to close out these existing ones.
📬 Open Bonds: Apart from government bonds, there are 10 open bonds listed on the Mongolian Stock Exchange (MSE). Seven of these are MNT-denominated bonds, with an average annual interest rate of 17.5%. Meanwhile, TGTB LLC’s “TML Plastic” factory has a green bond priced in USD with an interest rate of 10%.
💵 International Bonds: Recently, major Mongolian companies have been increasingly issuing USD-denominated bonds in international markets. Golomt Bank’s (GLMT) bond has a coupon rate of 11%, with an expected real return of 8.22%.
🤔 Who should consider this?
Those interested in investing in bonds should also look into the opportunities available on the Capital Market (BBZZ). Since 2022, bonds totaling MNT 3.1 trillion have been registered on this market, with Golomt Capital Investment Company (ÜCK) acting as the sole underwriter for MNT 1.5 trillion in bonds as of 2024. Although 52 ÜCKs are registered on the MSE, Golomt Capital and Ölzii & Co Capital are the primary players in bond trading.
In conclusion… This article is not intended to offer investment advice, but rather to provide information. Make sure to thoroughly research your investment decisions, my friends.
Source: https://lemonpress.mn/post/y5EGY6QX49A
