Ukrainian dollar bonds rise on bets on possible Trump victory - Bloomberg
Kyiv • UNN
Fund managers are actively buying Ukrainian dollar-denominated bonds in anticipation of Trump's victory in the US election. They hope that his presidency could help bring peace to Ukraine more quickly.
Fund managers have been actively buying Ukrainian dollar bonds, betting on Donald Trump's victory in the US election and his possible actions that could help speed up the end of the war with Russia. Written by UNN with reference to Bloomberg.
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In October, Ukrainian bonds delivered almost 6% yields, one of the best performers among emerging markets, with prices approaching 50 cents per dollar across the entire yield curve.
The bonds, whose payments are tied to Ukraine's economic performance, are trading at more than 70 cents on the dollar, the highest since Russia's full-scale invasion in 2022, when they fell to less than 15 cents.
Dragon Capital's Dmytro Bozhko noted that the funds are investing in the possibility that a Trump presidency could help to achieve a truce sooner.
“This opinion is quite widespread in the market. This is especially true for the bonds maturing in 2035 and 2036,” he said, referring to the bonds issued after the debt restructuring agreement concluded in August this year.
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