Tuesday, 24 September 2013

XE.com - EMERGING MARKETS-Ukraine bonds plunge, CDS surge on debt worries

XE.com - EMERGING MARKETS-Ukraine bonds plunge, CDS surge on debt worries:

"Ukraine's dollar bonds plunged more than 3 points on Tuesday and default insurance costs surged to 3-1/2-year highs on worries about the country's debt repayment schedule. Most other emerging markets also weakened.

Ukraine's bond yield spreads over U.S. Treasuries blew out 36 basis points to 935 bps on the main EMBI Global sovereign bond index, while its benchmark dollar bond maturing 2020 fell more than 3 points to 20-month lows.

Analysts said markets were reacting to the Moody's decision late last week to cut Ukraine's rating to Caa1, seven notches in junk territory.

The bond is trading 85 cents on the dollar, down 5 points this week, while a 2014 dollar bond issued by state-run oil firm Naftogaz also fell more than 3 points."

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