Fixed Income
Ukrainian Eurobonds rose for the third week in a row, as investors took notice of the attractive yields awaiting the country’s sovereign papers after their restructuring. We estimate that the new bonds will start off yielding about 10.5%. News that some holders reportedly owning about 10% of the Ukraine-15s issue due next week are threatening to vote against the restructuing did not affect prices. Meanwhile, a rather dubious statement from the National Bank that the next IMF loan tranche is expected to arrive in October nonetheless provided some optimism to market players. Quotes for Ukraine-17s, which like all outstanding issues are currently under the restructuring process, rose to a 9-month high, adding 1.5% to 75.3/77.0. Ukraine-15s increased by 2.3% to 77.5/79.0 and Ukraine-23s advanced by 2.7% to 75.0/77.0 (12.7%/12.2%).
