Government eurobonds of Ukraine reached its highest value since 2009 .
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At this point, all six issues of Eurobonds maturing domestic in the years 2011-2017 are traded with a yield of 9, 5-10, 5% per annum. Back in the spring this year the figure was 40-50%. During August, the yield government bonds fell by an average of 2, 5-3, 5 percentage points. Accordingly, maximally narrowed spreads and EMBI + Ukraine (index, which shows how profitability Ukrainian sovereign Eurobonds yield exceeds U.S. ten-year Treasury bonds), reaching the August 26 763 points. The last time such a low value of index EMBI + Ukraine observed in September 2008. Gone from the default level government Eurobond yield indicates the degree of confidence of foreign investors to a particular state. Currently, investment community assesses the risks of Ukraine is lower than that of Argentina (EMBI + Argentina is 917 points) and Venezuela (EMBI + Venezuela - 991 points), but much higher than in neighboring states: EMBI + Russia reached 369 points, in Bulgaria the figure is 348 points. All the experts in agreement, that the main cause of rising domestic costs of Eurobonds in August is the successful repayment of government bonds, "Ukraine-09". Recall August 5 Cabinet said that the timely and fully repaid Eurobonds $ 500 million, "Bond Redemption" Ukraine-09 "was a logical continuation in a series of good news about Ukraine. Even the most pessimistic minded investors convinced that the threat of default of our state now No "- says the analyst of investment company" the Concorde the Capital "Alexander Klimchuk. At the same time in March this year, international investors have been almost completely sure that our state can not be timely fulfill its international obligations. Thus, the maximum value of EMBI + Ukraine was registered on 10 March and was 3593 points. At that time, It was the highest among all developing countries. Prospects Ukraine was estimated even worse than the Ecuadorian government in which the December 2008, has defaulted on its Eurobonds. To end of the year - unchanged Analysts are three main factors which allowed the cost of Ukrainian Eurobonds to return to pre-crisis level. First, a global improvement in investor sentiment towards developing markets. "The conjuncture in world markets since March and April began to improve, risky and investors once again began to show interest in Ukraine ", - says principal analyst at Astrum Investment Management Sergey Fursa. Second a positive thing - a successful cooperation between Ukraine and the International Monetary Fund. "The resumption of talks with the IMF in April, was the starting point to reduce the profitability of Ukrainian eurobonds. The key moment was the decision that part of the second and third tranches may be used by Ukraine for repayment of external debt "- explains the analyst of investment company" Renaissance Capital "Anastasiya Golovach. And the third reason - successful settlement in August Eurobonds "Ukraine-09". According to experts, by the end of this year the cost of sovereign Eurobonds Ukraine significantly longer to change. In Company "Renaissance Capital" believe prices on the Ukrainian eurobonds is somewhat high, and as a result of profit taking by investors to value may slightly decrease. "Composite credit rating of Ukraine now «B-», while in Venezuela the same it is at the level «B +». But Venezuela's bonds had yields on 3-6% higher than the Ukrainian ", - says Anastasiya Golovach. At the same time, Sergey Fursa believes that the price of Ukrainian securities reached a fair level, and if the world markets will not strong shocks, their returns will fluctuate around current values.
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