The credit rating of investments in Slovenia government bonds
Gospodarska gibanja 465
A simulation of Slovenian state bonds’ yield using factors affecting the yield on the state’s bonds in 23 countries (accounting for 4 billion people or 56% of the world’s population) revealed that the Slovenian bonds’ yield would average 5.3% in 2011, and just 1.3% in 2012. Improvement in Slovenia’s external balance (the balance of payments of its current account) gave a clear signal to investors in Slovenian state bonds that the investment was safe. In 2012, the yield on the Slovenian bonds was without doubt strongly affected by the systemic risk tied to the mismanagement of Euroland. The high 6% yield on the Slovenian state bond was the consequence of elevated liquidity risk connected with this systemic risk.
Key words: Bonds, Yield, Public debt, International financial markets, Macroeconomics
JEL: E43, E44, E47, E65, F32, F34, F41, G15, H63Original
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