Ukraine’s Bonds Rise After Trump Wins US Election
Ukraine’s sovereign bonds went up in value after Donald Trump won the US presidential election. Investors think that a ceasefire will come sooner, which could help Ukraine recover and pay back its debts.
The price of Ukraine’s dollar-dominated bonds has gone up 12% in the past month, according to the Financial Times. This is because investors believe that Trump will push for a peace deal that can help Ukraine start recovering from the war.
Some people are worried that Trump might make Ukraine give up some territory to get a quick peace deal. However, Ukraine and its creditors agreed on a plan to restructure $20 billion in debt in September. This helped avoid default and kept Ukraine’s economy going during the war with Russia.
One type of bond owned by Ukraine’s grid operator Ukrenergo went up 160% to 67 cents on the dollar. Another bond, which matures in 2036, rose from 44 to 49 cents on the dollar.
Not everyone is optimistic about Ukraine’s future after a peace deal. A portfolio manager said there are still many unanswered questions about what will happen next.
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