Bond yields and yields variations on bonds in Montenegro |
The issue discussed is bond yields and yields variations on bonds in Montenegro. Specifically, we consider the frozen foreign currency savings bonds (FFCS bonds) and bonds issued to compensate the insured through the State-operated pension and disability insurance system (PandD bonds). Both classes of bonds are issued by the Central Government. Both are zero-coupon bonds, and mature in tranches: FFCS bonds mature annually, from 2004-2017 (as by tickers: OB04-OB17), while PiO bonds mature semiannually, from 2008-2011 (as by tickers: P08P, P09P, P09D, P10P, P10D, P11P). The former are issued to compensate natural persons whose foreign currency deposits became frozen, amid the collapse of the banking system during 1990’s (at the time State-owned), while the latter are issued to compensate for the controversial adjustment of pensions and other remunerations during the July 2002 - December 2003 period. The aforementioned bond classes are considered for various reasons, the most important being their highest trading volume among all the bonds. In addition, let us mention that after the new capital markets had been established in Montenegro, only one corporate bond issue was achieved.
dr Vladimir Kašćelan, mr Borko Božović |