Fixed Income
Ukrainian sovereign Eurobonds experienced high volatility last week amid the currency turmoil in Russia and speculation regarding Kyiv’s national budget parameters for 2015. Sentiments were helped by US President Obama’s signature of a bill passed by Congress, which allows the US to impose new sanctions against Russian state corporations and to supply weapons to Ukraine. Obama said in a statement that the signing of the legislation “does not signal a change in the administration’s sanctions policy.” He added that he has concerns that toughening the sanctions regime would bring the US out of line with the European Union. The US and Europe have thus far been quite successful in coordinating their response against Moscow over the latter’s military interference in Ukraine.
