Re: Pakistan Re-Enters Global Bond Markets : WSJ
Do you know the difference between ‘comparing’ and using something as a benchmark? NO ONE IS COMPARING these. This is how bond rates are quoted everywhere. :smack:
SBI overseas bonds priced 2.4-2.65 percentage points over US treasuries - Livemint
Re: Pakistan Re-Enters Global Bond Markets : WSJ
Again India's economy is far more robust than ours and far more investor friendly.
So now you are using India as a bench mark or comparing? Clarify for little old me.
Re: Pakistan Re-Enters Global Bond Markets : WSJ
which one are you calling AAA bond?
If you are talking about US government treasury bonds, then as I said, government bond prices are normally quoted as basis points above US treasury rates for comparison purposes.
I will just highlight the word in bold for your viewing pleasure. Again you using it as a comparison or a benchmark. Please be clear.
Re: Pakistan Re-Enters Global Bond Markets : WSJ
It was just an example of how eurobond rates are quoted: ABOVE US TREASURY rates.
About economy, see my post 13 again. I said almost the same thing. Our economy is in a bad shape largely due to haram khori, efficiency and effectiveness of the previous government.
US Treasury rate is used as a benchmark for comparison across sovereign bonds of different countries and over time. The yields or spreads are normally quoted over US Treasury rates. If you do not like India, here are some other examples: Page 76 of http://www.bis.org/publ/qtrpdf/r_qt0406f.pdf
Re: Pakistan Re-Enters Global Bond Markets : WSJ
And again I am asking why are comparing the two? Here is the simple thing. The Pakistani economy is no where as robust as the US economy or as stable. So why would you assume they would get the same interest rate as the US T-bill?
Its like comparing a rickshaw to a Ferrari and saying oh look my Rickshaw is not as fast.
The entire bone of contention is that the interest rates are high. Well no **** sherlock they are high. We have Caa1 rating. You don't need to be a financial expert to see that.
zafra... it is just a benchmarking exercise .. a very common practice as US Treasury rate is commonly considered a strong denominator for benchmarking exercise...yes all economies are different (india, pak, malyasia etc) with varying macro and micro conditions politically and strategically..hence benchmarking to something to see where one stands from financial pegging standpoint. Every financial aanalsyst at Wall Street does that ...
Yes, to your point it is never accurate and one can look into the interest rate in isolation to determine how *ty that country's economy is but probably the best way to do that is via benchmark. A financial analyst or portfolio manager will look at the interest rate that pak will be paying on these bonds and in his mind he will quickly correlate it to US treasury (as he will be doing for 20 other *ty emerging economies like pakistan) and will make a determination whether he want to spend part pf his portfolio on pakistani bonds or not