Fixed Income
Prices for Ukrainian sovereign Eurobonds continued to move in a sideways trend last week as no new information was revealed about a possible restructuring deal between the government and creditors. Finance Minister Natalia Jaresko once again reiterated that a combination of maturity extensions and writedowns to principal and coupons is required to meet IMF conditions. The IMF’s first review of the bailout falls on June 15, but there is rising speculation that no deal will be reached by that date between MinFin and a 5-member creditor group led by Franklin Templeton, as the creditors continue to hold out for a no-haircut offer. Sovereigns maturing in September, which are on the front line of any restructuring deal, were essentially unchanged at bid/ask of 51.5/53.5 cents on the dollar, while the longest outstanding issue, Ukraine-23s, advanced by 4.7% to close at 49.0/51.0 (21.0%/20.1%).
