Wednesday, 28 May 2014

Ukraine Short Sellers Bail on Losing Bond Market Wagers - Businessweek

Ukraine Short Sellers Bail on Losing Bond Market Wagers - Businessweek:



"Bearish bets against Ukrainian dollar bonds are backfiring as a thaw in the country’s conflict with Russia spurs the longest winning streak in four years. 




Money managers more than doubled short positions on Ukrainian dollar debt in the first part of the year, sending them to $846 million on April 30, according to Markit. Investors have since pared back the wagers by 23 percent to $655 million as the bonds surged an average 7.3 cents this month to 93 cents on the dollar. 




Bearish investors are absorbing losses as the election of President Petro Poroshenko, who has pledged to visit Ukraine’s eastern regions to end fighting with rebels, and signs from Russia it’s seeking to defuse tensions helped sustain bond gains for a 10th straight day yesterday. Investors had pushed up bets Ukraine’s debt would tumble as escalating conflict with separatists in the country’s east fueled concern the country was on the verge of civil war."



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