Fixed Income

December 26, 2017

Ukrainian sovereign Eurobonds finished mixed in light trading last week. Unfortunately the recent news flow regarding Ukraine had a mostly negative tone, with an uptick in violence along the Donbass contact line making headlines. In domestic politics, Finance Minister Olexander Danyliuk, one of the most widely-respected figures in the current government, openly accused the Prosecutor General’s Office of blocking a major investigation into the actions of former managers and owners of PrivatBank, which was nationalized in 2016 at the cost of several billion dollars. The government is finally moving to try to recover some of this money from oligarch Igor Kolomoyskiy. Meanwhile, former US Vice President Joseph Biden wrote about his uncertainty over whether Ukraine’s leaders will be able to overcome their own corruption and transform the country, in his recently published book. The benchmark Ukraine-2027 sovereigns ticked down by 0.2% to close at 103.3/103.8 (7.3%/7.2%) while the medium-te