Fixed Income
Quotes for Ukrainian sovereign Eurobonds saw a second week of decline without any obvious drivers, which we continue to attribute to a technical correction. On the other hand, we have to admit that poor demand for Ukrainian high-yield sovereigns that offer 8.5% could be viewed as a disappointing sign for the government amid its repeated claims that Ukraine will be able to tap international markets with a new bond issue in 2017. Meanwhile, IMF chief Christine Lagarde expressed confidence that just few more days are needed to complete a deal on wiring Ukraine the next USD 1bn disbursement of macro-financial assistance, following her meeting with President Poroshenko during the World Economic Forum in Switzerland. Nevertheless, a non-public memo leaked to the Ukrainian media showed that the IMF is demanding more structural reforms from Kyiv in exchange for further lending. The tough conditions include a long-delayed reform that would allow a free market in land, gradual increases in the r
