Fixed Income
Ukrainian Eurobonds were mixed last week, as the summer calm on financial markets has helped the papers to avoid volatility related to the massive news flow about a new wave of tensions between Kyiv and Moscow, this time over the disputed province of Crimea. Russia’s President Putin last week directly accused the Ukrainian government of carrying out armed incursions into the province, which President Poroshenko strongly denied. Neither side has been able to conclusively prove or disprove the charges, and in the absence of any independent sources of information, it is unclear what actually occurred. In our view, Putin may be facing an increasingly difficult internal political situation in the Kremlin now that it looks clear that Russia-friendly Donald Trump is rather unlikely to win the US presidency in November, and perhaps Putin feels that he needs to take new diplomatic and military risks to shore up his position. In any case, both countries put their armed forces on combat alert, dr
