Eurobond YTMs up significantly

Обзор облигаций 24.09.2014 At yesterday's close, the yield curve adjusted to the range of 10.22-20.14% as UKRAIN 6.875% '15 rose 245bp to 20.14%, UKRAIN 6.58% '16 was up 115bp to 15.30%, and UKRAIN 6.75% '17 rose 38bp to 13.22%, while UKRAIN 9.25% '17 rose 59bp to 15.27%, UKRAIN 7.95% '21 was up 55bp to 11.40%, UKRAIN 7.80% '22 and UKRAIN 7.50% '23 increased 36bp to 10.72% and 10.74 respectively. The 5-year CDS rose to 1,246bp. Investment implications: YTMs rose significantly yesterday to year highs based on negative anticipations of Ukraine's ability to fulfill debt repayments arising from Naftogaz's upcoming government-guaranteed Eurobond redemption amidst rumours of a possible debt restructuring.