13:11 14.01.2022

Ukrainian eurobond quotes collapse due to more belligerent statements by Russia

2 min read
Ukrainian eurobond quotes collapse due to more belligerent statements by Russia

More belligerent statements by Russian representatives led to a drop in Ukrainian eurobond quotes on Thursday by 2-4.7% (depending on the maturity), as a result of which the rates to maturity of almost all bonds exceeded 10% per annum.

Market participants told the Interfax-Ukraine agency the price of the "shortest" securities this year lost 2%, as a result of which the rate on them jumped from 10.6% to 14.25%.

Eurobonds maturing in 2023 decreased in price by 2.9%, which led to an increase in yields from about 10% to 12.2%. As a result, now the rates of these dollar securities are higher than domestic government bonds with similar maturities.

Falling prices of eurobonds maturing in 2024-2025 by 3.4-4.1% led to an increase in their profitability by almost 2 percentage points - to about 11.8% and 11.1%, respectively.

Rates on securities maturing in 2026-2027, which fell in price by about 4% on Thursday, also broke through the 10% level and now stand at about 10.7% and 10.2%.

Only the "longest" eurobonds maturing in 2032, although they lost in price more than others - almost 4.7%, still retained the yield to maturity just below 10% per annum, emphasizing a pronounced inversion of the yield curve (when rates on "short" papers are higher than for "long").

In addition, GDP warrants also fell in price by almost 7% on Thursday: now their price is about 80.3% of the face value - they have not been so cheap since the summer of 2019.

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