Fixed Income
Ukraine’s sovereign Eurobond issues were essentially unchanged last week, with bondholders simply unwilling to sell at distressed levels close to 45 cents on the dollar, at least until the Finance Ministry makes its long-expected restructuring offer. Holders are preparing for tough negotiations, with investment firm Rothschilds trying to organize a Ukraine creditors’ group, Reuters reported on Thursday (Mar 5). According to the Thomson Reuters eMAXX database, US mutual fund firm Franklin Templeton is the largest owner of Ukrainian sovereign debt, holding up to 30% of the par value outstanding on nearly every series of government bonds, making them the key player in any talks. Benchmark Ukraine-23s Eurobonds were flat at 42.5/43.5 (23.8%/23.3%) and quotes for sovereigns due this September were also unchanged at 49 cents on the dollar.
