Fixed Income

April 10, 2018

Ukrainian sovereign Eurobonds saw some recovery last week, with investors receiving an encouraging message from the government that the economy might grow faster than previously expected. The revised forecast now foresees a 3.2% rise in Ukrainian GDP in 2018 after a 2.5% YoY increase in 2017. The longest outstanding sovereign issue, Ukraine-32s, saw a firm rise of 1.1% to 97.4/98.2 (7.7%/7.6%), medium-term Ukraine-23s gained 1.0% 104.3/105.0 (6.8%/6.7%), and Ukraine-19s (due next September) were unchanged at 104.0/104.5 (4.8%/4.4%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) edged up 0.5% to 70.0/71.0 cents on the dollar.