Fixed Income
January 12, 2016
Ukraine’s sovereign Eurobonds started the first trading week of 2016 on a positive note, with 10-year bonds gaining 4.0% to close at 91.5/91.8 (9.1%/9.0%) on expectations that the Ukrainian economy will begin to rebound in 2016 after a near 10% contraction in 2015 caused by the loss of output from separatist-occupied territories. A mission from the IMF is expected next week to discuss the possibility of a major disbursement in early February. However, the unpopularity of austerity measures and the slow pace of legal and judicial reform suggest that politics in Kyiv are likely to be another bumpy ride this year.
