Ukraine’s bonds risk extending the world’s third-biggest slump this quarter as the nation’s conflict with Russia escalates amid intensified fighting.
Aberdeen Asset Management Plc and Erste Sparinvest KAG said yields aren’t high enough to justify buying even as the rate on Ukraine’s July 2017 dollar notes jumped 382 basis points since Aug. 19 to a three-month high yesterday. The country’s debt lost 8 percent since June, the most after Argentina and Venezuela in Bloomberg’s Dollar Emerging Market Sovereign Bond Index.
Bondholders are steering clear of Ukraine as President Petro Poroshenko said the armed conflict in his country is escalating “close to the point of no return” as Russian troops and tanks enter his country. U.S. President Barack Obama is in Europe to reassure allies threatened by the crisis that has killed 2,600 people and deepened the woes of a country reliant on an International Monetary Fund bailout to repay its debt.
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