Fixed Income
Ukraine’s sovereign Eurobonds experienced a moderate correction after rising sharply a week earlier on news of a Russian-financed sovereign bailout. The country’s benchmark 10-year issue edged down by 0.5% to close at 89.8/91.3 (9.2%/8.9%) despite an announcement from Standard & Poors that it is upgrading Ukraine’s rating outlook to stable from negative on the Russian bailout, which is supposed to provide USD 15bn in financing as well as cheaper natural gas. Medium term Ukraine-17s slipped by 0.1%, ending at 91.9/93.4 (9.3%/8.8%). Corporate issues were a mixed bag, with MHP-15s rising by a healthy 1.3% to close at 103.0/104.0 (7.8%/7.0%), while DTEK-18s shed 0.1% to close at 94.0/94.5 (9.6%/9.5%). The banking sector’s debt saw some notable declines, with low-liquidity Nadra-17s plunging by 5.3% to 79.1/81.7 (25.3%/22.7%) and PrivatBank-16s falling 3.0% to 65.6/75.0 (28.6%/21.1%). State owned OschadBank-18s inched down 0.1% to close at 88.2/89.9 (12.5%/12.0%).
