Fixed Income
Quotes for Ukrainian sovereigns rose for a second straight week on hopes that announced confidential negotiations between the Finance Ministry and the main creditor group will ultimately lead to a result that allows the country to avoid a technical default in the coming weeks or months. Although the latest statement from the government said that Finance Minister Natalia Jaresko won’t attend the planned round of debt-restructuring talks, direct private contacts between the two sides reduces the chance that Kyiv will impose a moratorium on interest payments before the next one comes due on Jul 24 (in the amount of USD 120mn). The country’s longest outstanding Eurobond, Ukraine-23s, rose by 2.8% to 53.8/55.0 (19.2%/18.7%), and the closely-watched USD 2.6bn Ukraine-2017 issue advanced by 1.7% to 50.4/51.9 (51%/49%). The USD 500mn Eurobonds maturing in September, which remain on the front line of the restructuring, were little-changed at 53.5/55.0. The major corporate debt issues were al
