Fixed Income

July 23, 2018

Quotes for Ukrainian sovereign Eurobonds declined last week as overall sentiments toward emerging markets turned more bearish. On the other hand, Angola, which rated B- by S&P Global Ratings and B3 by Moody’s, still managed to sell USD 500mn Eurobonds maturing in 2048 at 9.1%. The deal drew an order book of over USD 3bn, showing that investors remain hungry for high-yield sovereign debt papers. In Ukraine related news, a highly publicized meeting between US President Trump and Russian President Putin on Jul 16 did not produce any public information regarding their positions on the Ukraine issue. However, the Russian side spread a rumor that Trump is considering a Russian proposal that would allow pro-Russian separatist Ukrainian territories to hold referendums to decide their fate. This would mark a significant change from the stated position of the US, which fully backs the Minsk peace process to resolve the conflict. Prior to the summit, Trump had declined to take a firm stance on Uk