Fixed Income
Ukrainian sovereigns rebounded somewhat last week after the heavy selloff seen in the second half of September. Quotes for benchmark Ukraine-23s climbed 0.8% to close at 84.2/85.2 (10.1%/9.9%), and medium-term Ukraine-17s strengthened by 1.2% to 87.0/88.0 (10.7%/10.4%). However, the overall investor attitude to Ukraine’s risk profile did not change considerably over the week, as attention was mainly focused on the political situation in Italy and the federal government shutdown in the US. Ukraine’s 5-year credit default swap (CDS) rate was only marginally lower, inching down by 30 bps to 1,057 bps and remaining at a 3-year high. Corporate issues were mixed. Among the top names, MHP-20s lost 0.9% to end at 79.9/82.2 (12.9%/12.3%) and Metinvest-15s dropped by 1.1% to 98.3/99.5 (11.4%/10.6%). Meanwhile, Metinvest-18s edged up 0.6% to 97.0/88.2 (12.7%/12.3%). In the banking universe, most quotes declined, with PrivatBank-18s falling 2.0% to 84.5/87.1 (15.9%/15.0%) and UkrEximBank-18s
