Fixed Income
Quotes for Ukrainian sovereign Eurobonds slumped last week after flaring tensions between Ukraine and Russia spoiled investor risk appetite. Ukraine’s security and defense council said the border town of Novoazovsk and other areas of Ukraine’s south-east had fallen under the control of Russian forces, together with rebels. The US and EU officials said they were considering a range of responses, including more sanctions. Surprisingly, the situation in Donbass region has deteriorated just two days after the Ukrainian and Russian presidents met in Minsk. The long term bonds Ukraine-23s were hit by 4.9% to 85.0/86.5 (10.2%/9.9%), medium term Ukraine-17s also lost 4.9% closing at 87.9/89.9 (11.4%/10.6%). Ukraine-15 with maturity in September fell by 3.1% to 91.0/93.5 (16.6%/13.8%).
