Pitfalls of Global Yield Hunt Exposed in Mongolia, Ukraine Routs
- Bonds slide on Mongolia crisis warning, flare up in Crimea
- Countries’ bonds among best performers in rush to high yields
Mongolia Calls for 'Crisis' Plan
Investors who piled into some of the world’s riskiest bonds to escape near-zero interest rates got a reality check this week as signs of an economic crisis in Mongolia and a flare up in the conflict in Ukraine sent their bonds tumbling.
Mongolia’s $1 billion of notes due in six years fell the most on record on Wednesday after the finance minister went on television to say his critical goal was to avoid default as growth slows and the debt burden soars, prompting Barclays Plc to remove its overweight recommendation. A slump in Ukrainian Eurobonds sent yields toward their biggest one-day increase since February on Thursday after officials in Kiev warned Russia is seeking to escalate a military conflict over the disputed Crimean peninsula.