Fixed Income
Corporate Eurobonds were less active than sovereigns last week. The Kernel-27s issue advanced by 1.1% to 108.0 (5.3% YtM) after the company’s Jan-Mar financial results met expectations. Kernel’s Net Debt/EBITDA ratio stood at a comfortable 1.4x on Mar 31. MHP-26s added 0.4% to 104.0 (6.1% YtM) and the EUR-denominated NaftoGaz-24s issue inched up by 0.2% to 101.6 (6.5% YtM). On the downside, DTEK Energy’s new Eurobond with maturity in 2027 started off disastrously, plummeting to 67.7 (12.4% YtM) immediately after being issued at 100 and a coupon of 5.0% in exchange for the previous DTEK-24s Eurobond, which had gone into default. Quasi-sovereign OschadBank-25s shed 0.9% to 106.0 (6.5% YtM) while UkrEximBank-25s rose 0.4% to 107.4 (5.6% YtM).
