Ukraine's GDP warrant debt set for biggest weekly loss since 2022 invasion

BY Reuters | ECONOMIC | 04/04/25 05:02 AM EDT

LONDON, April 4 (Reuters) - Ukraine's GDP warrant - a bond-like debt instrument that only pays out when the economy grows strongly - was on track for its biggest weekly loss on Friday since just after Russia's full-scale invasion in February 2022.

The warrants were down just over 1 cent on the day to be bid at 66.87 cents having also wiped out all the gains they made following U.S. President Donald Trump's reelection last year.

Some of the country's sovereign bonds - which were restructured last year - and are also linked to the economy's performance, shed as much as 1.5 cents. (Reporting By Libby George; editing by Marc Jones)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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