Bloomberg: Ukrainian bonds fall amid U.S.-European disagreement
3 March 19:45
Ukraine’s dollar-denominated bonds have fallen the most since last year’s restructuring amid disagreements between the US and Europe over the peace process between Russia and Ukraine.
This was reported by Bloomberg, according to Komersant ukrainskyi.
It is noted that the expectations of investors, who were waiting for an orderly movement towards a ceasefire between Russia and Ukraine, have been shaken. Eastern European assets, which had risen in anticipation of a quick settlement of the war, were mixed on Monday.
Ukraine’s zero-coupon dollar bonds maturing in 2035 dropped by more than 3.5 cents on the dollar to 62 cents. Ukraine’s sovereign bonds were the worst performers of the day in emerging markets.
Pavlo Mamay, managing partner at Promeritum Investment Management, said that while Ukrainian bonds may have risen too quickly on hopes of a peace deal, the fundamentals for growth remain intact.
“It was expected that the deal (a peace agreement between Russia and Ukraine – ed.) would be very easy and quick, but last week market participants realized that it will take time,” he said.
Mamai added that regardless of how the war ends, whether it is a very strong peace agreement or a truce with risks, the outlook for bonds will be positive.
The Polish zloty, which reached a 10-year high against the euro last week, rose by 0.6%, while the Hungarian forint also gained.
The WIG20 stock index in Warsaw, which has been a key beneficiary of bets on a possible peace deal between Russia and Ukraine, was down 1.3%.
Meanwhile, shares of Astarta Holding, a Ukrainian agricultural company listed on the Warsaw Stock Exchange, dropped 13%.
