Ukraine Fixed Income Weekly (October 26, 2015)
Ukraine’s Eurobonds prices remained nearly unchanged last week. Ukraine-15, Ukraine-20, and Ukraine-21 remained unchanged at 82.7 cents, 81.2 cents, and 78.8 cents. Ukraine-17 and Ukraine-23 gained 0.4 cents on average and were traded at 78.9 cents and 79.1 cents. Ukraine-16 and Ukraine-22 lost 0.4 cents on average and were traded at 78.5 cents and 79.2 cents respectively. In our view, while benefiting from the upward review of the country’s ratings by rating agencies following the completion of the debt restructuring operation, Ukraine’s Eurobond prices were still waiting for the finalization of the notes’ exchange. Additionally, the local elections of October 25 might have frozen the market, in expectations of the electoral results and their effect on the country’s policy.