Ukraine Bonds at 60 Cents Seen Signaling Risk of Default - Bloomberg

Ukraine Bonds at 60 Cents Seen Signaling Risk of Default - Bloomberg:



"Ukraine’s deepening recession and mounting debt burden have bondholders to Moody’s Investors Service weighing prospects for a sovereign default.



The country’s July 2017 notes are trading at about 60 cents on the dollar after a record monthly selloff in December, down from above par a year ago. Ukrainian debt lost 21 percent in 2014, the worst slump after Venezuela among 59 countries tracked by the Bloomberg USD Emerging Market Sovereign Bond Index. (BEMS)


Investors are fleeing as central bank Governor Valeriya Gontareva said on Dec. 30 that Ukraine is facing a “full-blown financial crisis” and that its economy probably shrank 7.5 percent in 2014 amid a collapse in the currency and the war with pro-Russian separatists in the country’s east. Bond prices are signaling expectations of delayed repayments and possible losses on principal, according to Lutz Roehmeyer at LBB Invest."



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