Wednesday, December 10, 2014

Ukraine Bonds Crash to Record Lows

Ukrainian bonds are slumping to record lows after FT reported that the International Monetary Fund is concerned the country's bailout program  is unraveling, and will need another $15bn  within weeks to avoid a financial collapse.
With Western willingness to add such a sum extremely doubtful, investors are concerned that they will have to pay the cost via a debt restructuring, and have sent the price of the country's government bond sliding.
The $2.6bn bond due in 2017 slumped to just 70.8 cents on the dollar, for a record annual yield of 25.09 per cent, while the next bond to mature – a smaller $500m security due next September – fell to 80.9 cents on the dollar, or a yield of 37.05 per cent.

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