{"id":9045,"date":"2013-03-22T00:15:44","date_gmt":"2013-03-22T00:15:44","guid":{"rendered":""},"modified":"2013-03-22T00:15:44","modified_gmt":"2013-03-22T00:15:44","slug":"albania-s-eurobond-performance-during-2010-2013","status":"publish","type":"post","link":"https:\/\/ndiqparate.al\/?p=9045&lang=en","title":{"rendered":"Albania&#8217;s Eurobond Performance During 2010 -2013"},"content":{"rendered":"\n<div align=\"justify\">Albania issued the first Eurobond in international markets on November 4th of 2010. A Eurobond is a bond issued in international markets (not locally) with a maturity of 1 year or more. At the announcement the bond had a 7.625% yield.&nbsp; This instrument is comparable to other government bonds already issued by Albania, but it: (i) is exclusively traded in foreign international markets and (ii) is issued in Euro.<\/p>\n<p>Since the yield moves in the opposite side of price, for the bondholder it is always better when yields decrease, so that he can generate a profit in case he sells the bond. The same rule applies for the issuer, because the lower the yield, the lower the potential cost in case he decides to refinance.<\/p>\n<p>The following graph presents the historic performance of the Eurobond for the period 2010-2013 (bid yield):<br \/><sup><br \/><\/sup><br \/>\n  <script type=\"text\/javascript\" src=\"http:\/\/ajax.googleapis.com\/ajax\/static\/modules\/gviz\/1.0\/chart.js\">{\n\t\"chartType\":\"LineChart\",\n\t\"chartName\":\"Chart 1\",\n\t\"dataSourceUrl\":\"https:\/\/docs.google.com\/spreadsheet\/tq?range=B5%3AC35&key=0Agylwmr5tEbVdHBfaUJHTV9BeFZRSkVFWXNINzB3WHc&gid=1&headers=-1\",\n\t\"options\":{\"width\":600,\"height\":371,\"title\":\"Albania's Eurobond Yield\",\"legend\":\"right\",\"pointSize\":5,\n\t\"hAxis\": {\"title\": 'Date', \"titleTextStyle\": {\"color\": 'red'}},\n\t \"vAxis\": {\"title\": 'Value', \"titleTextStyle\": {\"color\": 'red'}},\n    \"labelPosition\":\"right\",\"is3D\":true,\"hasLabelsColumn\":true,},\n    \"refreshInterval\":5,   \n    }\n  <\/script><sup><br \/>Source: Ministry of Finance, Bloomberg<br \/>Comments and analysis: ODA<\/sup><\/p>\n<p>Since its issue in 2010, the yield of the bond has increased in the period of September-December 2011 during the Eurozone crises, which lowered the demand for high risk, lower rated government bonds. During that period the yield reached a peak of 11.975%. In that moment, had the Albanian government decided to refinance its debt in Euro, the bond coupon would have been approximately 12%.<\/p>\n<p>After December 2011, the yield has decreased reaching a low of 5.37% during February 2013. This decrease is not a result of a better macroeconomic environment in Albania, but a result of a general market euphoria for high yield government debt. This has had a very positive impact on the bonds performance and actually the Albanian government would have a lower cost of refinancing in Euro compared to the initial issue.<\/p>\n<p>  <script type=\"text\/javascript\" src=\"http:\/\/ajax.googleapis.com\/ajax\/static\/modules\/gviz\/1.0\/chart.js\">{\"dataSourceUrl\":\"https:\/\/docs.google.com\/spreadsheet\/tq?range=B46%3AC76&key=0Agylwmr5tEbVdHBfaUJHTV9BeFZRSkVFWXNINzB3WHc&gid=1&headers=-1\",\"options\":{\"displayAnnotations\":true,\"showTip\":true,\"dataMode\":\"markers\",\"fontColor\":\"#fff\",\"midColor\":\"#36c\",\"pointSize\":0,\"colors\":[\"#3366CC\",\"#DC3912\",\"#FF9900\",\"#109618\",\"#990099\",\"#0099C6\",\"#DD4477\",\"#66AA00\",\"#B82E2E\",\"#316395\"],\"headerColor\":\"#3d85c6\",\"smoothLine\":false,\"lineWidth\":2,\"maxColor\":\"#222\",\"headerHeight\":40,\"labelPosition\":\"right\",\"is3D\":false,\"fontSize\":\"14px\",\"hasLabelsColumn\":true,\"wmode\":\"opaque\",\"hAxis\":{\"maxAlternation\":1},\"maxDepth\":2,\"allowCollapse\":true,\"minColor\":\"#ccc\",\"mapType\":\"hybrid\",\"width\":600,\"height\":350},\"state\":{},\"chartType\":\"Table\",\"chartName\":\"Chart 1\"}\n  <\/script><br \/><sup>Source: Ministry of Finance, Bloomberg<br \/>Comments and analysis: ODA<\/sup><br \/> \n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Albania issued the first Eurobond in international markets on November 4th of 2010. A Eurobond is a bond issued in international markets (not locally) with a maturity of 1 year or more. At the announcement the bond had a 7.625% yield.&nbsp; This instrument is comparable to other government bonds already issued by Albania, but it: (i) is exclusively traded in foreign international markets and (ii)&hellip; <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[57],"tags":[],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/pcJP0S-2lT","_links":{"self":[{"href":"https:\/\/ndiqparate.al\/index.php?rest_route=\/wp\/v2\/posts\/9045"}],"collection":[{"href":"https:\/\/ndiqparate.al\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ndiqparate.al\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ndiqparate.al\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ndiqparate.al\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9045"}],"version-history":[{"count":0,"href":"https:\/\/ndiqparate.al\/index.php?rest_route=\/wp\/v2\/posts\/9045\/revisions"}],"wp:attachment":[{"href":"https:\/\/ndiqparate.al\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ndiqparate.al\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ndiqparate.al\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}