Investors piled into bonds of the Former Yugoslav Republic of Macedonia on Monday after Greek lawmakers approved a name change accord which is seen paving the way for the Balkan country to join NATO and possibly the European Union, making it the region’s latest turnaround story.
The settlement between Athens and Skopje over the use of the term “Macedonia” ends a 28-year row by renaming FYROM “Republic of North Macedonia” to differentiate from Greece’s northern province of Macedonia.
FYROM’s sovereign bonds scaled multi-month highs, with the issue maturing in 2025 hitting a one-year high.
The bond has risen some 3.5 cents in price in the past 10 days, according to Tradeweb data. Bond prices slipped a touch as the session progressed, however, snapping a stellar run that saw most issues chalk up gains for around nine straight sessions.
FYROM “is a credit that is moving in the right direction,” said Mark Dowding, a senior portfolio manager a BlueBay Asset Management, a $59.6 billion fund.
“After the accord, we can see the country being included in NATO and by extension, a candidate for EU accession before too long.”