Fixed Income
Ukrainian sovereign Eurobonds finished last week nearly unchanged, with Ukraine-22s inching down 0.3% to 101.5/102.0 (7.6%/7.5%) and Ukraine-17s edging up 0.4% to close at 109.2/109.8 (6.8%/6.7%). Meanwhile, the government paid more than 8% to attract USD funding over 2 years at the Finance Ministry’s weekly domestic auction. FinMin sold 2-year USD denominated bonds in a total amount of USD 126mn at 8.07%. This difference suggests to us that the sovereign Eurobond prices may be somewhat inflated. In corporate universe, Ferrexpo-16s were little-affected by the company’s postponement of a new Eurobond issue, for which it cited “widening in credit spreads since the beginning of February.” The outstanding bond inched down by just 0.2% to 100.4/100.7 (7.7%/7.6%), in contrast to a 12% selloff seen in the company’s equity.
