Eurobond YTMs diverge

Обзор облигаций 23.09.2014 At yesterday's close, the yield curve adjusted to the range of 10.36-17.69% as UKRAIN 6.875% '15 slid 23bp to 17.69%, while UKRAIN 6.58% '16 was up 12bp to 14.15%, UKRAIN 6.75% '17 rose 66bp to 12.83%, and UKRAIN 9.25% '17 rose 71bp to 14.69%, UKRAIN 7.95% '21 was up 6bp to 10.86%, UKRAIN 7.80% '22 and UKRAIN 7.50% '23 increased 7bp to 10.36% and 10.38%, respectively. The 5-year CDS rose to 1,183bp. Investment implications: Ukrainian Eurobond YTMs remained very high last week due to the ongoing conflict in eastern Ukraine and delays in gas talks. With additional pressure from Naftogaz's government-guaranteed Eurobond redemption scheduled next week, yields are expected to remain at their current levels.