Fixed Income
Ukrainian sovereign Eurobonds experienced their first losing week since late January, with benchmark Ukraine-22s declining by 1.5% to 104.3/104.8 (7.2%/7.1%). Investors around the globe shuffled their money back into safe-haven assets as they sought refuge from fallout from a possible collapse of the Cyprus banking system after the country initially rejected an EU bailout plan. Short-term Ukraine-13s with maturity in November slid 0.4% to 100.3/100.8 (6.3%/3.9%) and medium-term Ukraine-17s lost 1.7%, closing at 100.5/101.0 (6.6%/6.5%). Corporate Eurobonds were also under pressure, with agro-sector issues Avangard-15s and Mriya-16s falling by 1.4% to 99.9/101.8 (10.0%/9.2%) and 1.7% to 103.7/104.8 (9.5%/9.1%), respectively. The drop in DTEK-15s was limited to 0.3%, with the bonds ending at 105.1/106.2 (6.8%/6.3%), although the bid/ask spread widened considerably. In the banking sector, the 2016 Eurobonds of Ukraine’s state-owned OschadBank lost 1.3% to 98.8%/99.7% (8.7%/8.4%) On the mo
