Fixed Income

August 27, 2019
 

Ukrainian sovereigns regained some ground last week after their 2-week correction, as the growing pool of negative-yielding debt is making Ukrainian Eurobonds more attractive among return hungry international market players. In country specific news, there was publication of the new polls saying that only about 40% of Ukrainians believe that joining NATO would be the best security guarantee for their country, while 36% see Ukraine’s security in its non-aligned status and around 7% spoke in favor of a military union with Russia and other CIS countries. This is down from 46% of Ukrainians saying in 2018 that they would like their country to join NATO. We assume that President Zelenskiy is unlikely to push Ukraine’s access to NATO as aggressively as ex-President Poroshenko. However, from his steps so far, we think that Zelensky is clearly a pro-Western politician.