Fixed Income
Ukrainian sovereign Eurobonds were hammered by investors last week, with quotes for benchmark Ukraine-23s plummeting by 7.4% to 87.4/88.6 (9.7%/9.4%) as fighting intensified around the separatist-controlled city of Donetsk, and investors fretted over Moscow’s suggestion that Russian “peacekeepers” could be deployed to intervene in the conflict. NATO said Russia had massed 20,000 soldiers along the border, although this weekend passed without a major move from the Russian side. Donetsk could be recaptured by Ukraine in the coming days, but there is still no obvious resolution to the situation in other rebel-held territories further to the east, as neither the pro-Russian separatists nor Kyiv have shown any desire for a compromise.
