Eurobond market anticipates restructuring plans

Обзор облигаций 17.03.2015 The bond market reacted insignificantly not only to the MoF's presentation last Friday of its new IMF program and details of the debt restructuring but also to Russia's announcement that it would not participate in the debt restructuring. Despite the upcoming bond redemption in December, the Kremlin received no official proposals, so yesterday's declaration is by no means final. Prices of most bonds remained below 50 except for UKRAIN 6.875% '15, UKRAIN 5.00% '15, and UKRAIN 1.844% '19. The Ukrainian CDS reflects negative anticipations and a principal reduction announced by the MoF last Friday. The 5-year CDS rose above 4,000bp at the end of last week, and yesterday rose to 4,384bp.