Fixed Income
Ukrainian sovereign Eurobonds fell sharply last week, giving back most of their gains from the IMF-related rebound of the preceding week, as a lack of details regarding the announced sovereign restructuring triggered a selloff across the board. Finance Minister Natalia Jaresko traveled to the United States for consultations with the largest holders of Ukrainian debt, but no information has emerged about how these talks are going. The country’s longest outstanding issue, Ukraine-23s, slid by 9.3% to 42.0/43.8 (24.1%/23.2%). Sovereigns maturing this September, which are certain to be restructured, tumbled by 17.1% to near 45 cents on the dollar. Corporate Eurobonds were less active, with MHP-20s declining by 1.3% to 65.1/66.2 (19.5%/19.0%). Meanwhile, UZ Rail-18s lost 7.1% to close at 38.0/40.0 (50.9%/48.4%) and Ferrexpo-16s rose 0.7% to 79.0/81.0 (34.9%/30.6%).
