Fixed Income
Quotes for Ukrainian Eurobonds rose again last week as global investors resumed their hunt for risky high-yield instruments amid the strong post-Brexit rally. On the diplomatic front, US Secretary of State John Kerry positively assessed the Donbass peace process following his talks with Russian President Putin in Moscow, although he admitted that there are “unresolved issues” in the context of Ukraine. Meanwhile, NATO chief Jens Stoltenberg said Ukraine was “the first item” on the agenda of the NATO-Russia Council meeting held at the ambassadorial level on Jul 13; no details about those talks were released. The shortest outstanding sovereign issue, Ukraine-19s, saw offers exceed 100% of the nominal price for the first time, with the bond adding 1.4% to close at 100.8/101.3 (7.5%/7.3%). The benchmark 10-year bonds, Ukraine-26s, gained 1.3% to 97.8/98.5 (8.1%/8.0%). The VRI derivatives (linked to Ukraine’s future GDP performance) advanced 6.7% to 35.5/36.5 cents on the dollar after th
