Current Situation of the Corporate Bond Market of Mongolia and Proposed Solutions to the Challenges

Abstract

One of the ways for the corporate financing is the long term debt issuance. However, the long term debt financing requires a great deal of responsibilities from an issuer and major risk involvement from buyers and investors. Debt financing is very common in developed markets where the payback guarantee is evaluated by the rating agencies. The bond rating itself reduces the risk and increases the trust of the investors and is conducted based on internationally accepted theories and techniques. Therefore, it is deemed crucial for the Mongolian debt market to develop the bond rating mechanism where the sound appraisal of the payback capabilities and solvency based on the international experiences is the key.