Fixed Income
Quotes for Ukrainian sovereigns remained near their local lows last week and the country’s major corporate issues fell notably, as investors worldwide continue to show reluctance to put their money into emerging market debt funds. According to research data from BofA/Merrill Lynch, an outflow from such funds was observed for the 14th straight week. Emerging-market bond and equity funds have been taking a beating ever since Federal Reserve Chairman Benjamin Bernanke suggested the Fed was considering a scaling-back of its monetary stimulus policy back in May. Benchmark Ukraine-23s were nearly unchanged at 85.3/85.9 (9.9%/9.8%) and medium-term Ukraine-17s fell 0.6% to 88.7/89.2 (10.1%/10,0%). Quasi-sovereign Naftogaz-14s edged down by 0.4% to close at 98.0/98.8 (11.5%/10.7%). In top corporate issues, MHP-20s lost 0.7% to 87.9/89.5 (10.9%/10.5%), DTEK-18s dropped 1.7% to 92.4/93.3 (10.0%/9.7%) and Metinvest-18s declined by 0.6% to close at 94.0/95.2 (10.5%/10.1%).
