Fixed Income
November 30, 2015
Ukraine’s new sovereign Eurobond issues ended lower in their second week of trading, weighed down by geopolitical tensions over the Russia-Turkey confrontation as well as investors’ worries about whether Kyiv will receive the next tranche of its IMF loan this year. Ukraine-25s declined by 1.1% to 93.3/94.0 (8.8%/8.7%) while Ukraine-19s were flat at 97.3/98.0 (8.6%/8.4%). The so-called VRI (value recovery instrument) securities issued in exchange for the USD 3.0bn principal write-down continued to show high volatility, falling 7.8% to 46.0/48.0 cents on the dollar after jumping by 25% in their first week of trading.
