Dollar bonds of Ukraine rose in price, as after the re-election of Donald Trump as the President of the United States, his promises to speed up the end of the war with the aggressor country of Russia became a key topic.
This is reported by the Bloomberg agency.
Ukrainian GDP warrants, a type of debt securities with payouts tied to economic growth, were trading at around 74 cents on the dollar on Wednesday, November 6. The last time such levels were observed was before the full-scale invasion of the aggressor country of russia into Ukraine in early 2022.
Chart: Bloomberg
Fund managers have reportedly started buying Ukrainian dollar bonds in recent weeks as a Donald Trump presidency has become more likely. Today, these bonds have become one of the most profitable in developing markets in terms of percentage growth. Ukrainian bonds maturing in 2035 rose by 1.8 cents to 47.3 cents on the dollar.
"Bonds reflect the likelihood that the war could end sooner rather than focusing on what that deal will look like," said Thys Louw, a portfolio manager at Ninety One UK Ltd.
The agency also noted that the rise in Ukrainian bonds stood out among emerging markets, where currencies and stocks largely sold off on the prospect that Donald Trump could impose tariffs on trade. Eastern European currencies were among the hardest hit, with the forint trading at the weakest since late 2022.
As Ukrainian News Agency earlier reported, Donald Trump announced his victory in the election.
Subsequently, Ukrainian President Volodymyr Zelenskyy congratulated Donald Trump on his victory in the race for the post of US President.
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