Monday, 24 February 2014

Rally in Ukrainian bonds: is it justified? | beyondbrics #EuroMaidan

Rally in Ukrainian bonds: is it justified? | beyondbrics:



"Ukrainian bonds are rallying strongly on Monday as investors digest the weekend’s dramatic events. Short term bonds issued by the sovereign and by Naftogas, the state gas company, have recovered from their recent panic levels.



But is there so much for investors to cheer about?

Chris Weafer of Macro-Advisory thinks not. He wrote on Monday:



After the news of Friday’s peace deal there was a rally in the value of the Hryvnia, in the UX Equity Index and in Ukraine debt prices. Those moves are not justified. 


Why? Because even if Ukraine’s new leadership manages quickly to secure a deal from the EU and the IMF to replace the $15bn package offered by Russia, it won’t be enough:"



'via Blog this'

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