Fixed Income
February 10, 2014
Ukraine’s sovereign Eurobonds ended generally higher last week, helped by suggestions that Western countries might step in with an aid package to replace Russia’s suspended USD 15bn bailout. However, the country’s banking and corporate debt issues sold off heavily after the hryvnia slid to its lowest level in 5 years, and the National Bank (NBU) appeared to finally give up defending its longtime dollar peg. The situation forced the NBU to step in with additional interventions and administrative measures, and the hryvnia recovered to end the week at 8.55 against dollar after spiking to 9.10 intraday on Wednesday.
