Fixed Income
July 14, 2014
Quotes for Ukrainian sovereign Eurobonds ended higher last week, as risk appetite among international investors was spurred by signs that the US Federal Reserve is in no hurry to raise interest rates from their historic lows. An additional argument for buying high-yield sovereigns was Greece’s second successful bond sale since its 2010-12 debt crisis and subsequent European bailout. The country was able to raise EUR 1.5bn over three years at a microscopic 3.5% rate. Among internal positive drivers, we note comments from Prime Minister Arseniy Yatsenyuk that Ukraine has met all of the IMF’s conditions to receive a new loan tranche of USD 1.48bn as part of the USD 17.0bn stand-by program approved in May.
