Fixed Income
September 19, 2016
Quotes for Ukrainian sovereign Eurobonds corrected somewhat on profit taking after the IMF finally gave the country the third tranche of USD 1.0bn under USD 17.5bn economic program. Although the news was very positive, investors proffered to evaluate Ukrainian risk once again rather rushing to purchase the country’s high yield bonds. Among still unanswered questions is a fact that there is no visible scenario of the country’s fast economic recovery. The government forecasted a 3.0% GDP growth for 2017 which will be not enough for persuading the real sector in invest more into business expansion. A record level of grain harvest in Ukraine was also not a good argument for optimist as global soft commodity prices remain weak.
