Fixed Income
Quotes for Ukrainian sovereigns rose again last week, spurred by headlines that the Finance Ministry and the main creditor group made progress in direct talks in Washington on Wednesday (Jul 15). An agreement needs to be reached before a USD 500mn Eurobond matures in late September; however, a crunch could come as soon as the end of this week, with a USD 120mn interest payment due on Friday (Jul 24). Benchmark Ukraine-23s added 1.4% to close at 55.0/56.3 (18.7%/18.3%) and Ukraine-17s advanced by 3.6% to 53.9/55.1 (47%/46%). In a separate positive news, Parliament passed a trio of laws needed to unlock the next payout of a USD 17.5bn IMF aid package. A tranche of USD 1.7bn now expected to arrive in August. Moreover, the adopted bills unlocked USD 1.5bn in financing from the World Bank, as well as EUR 200mn from Germany and USD 300mn from Japan. In corporate issues, MHP-20s edged up 0.4% to 80.3/82.3 (14.1%/13.5%) while DTEK-18s lost 3.3% to end at 43.0/45.0 (47.3%/45.0%). Ferrexpo-19s w
