Research Fixed Income
News, Events, & Reports

Print.

Print

Small font size A Larger text size A Largest text size A

Ukraine's GDP warrant swap proposal likely to get "high take-up" - Citi

BY Reuters | ECONOMIC | 09:21 AM EST

LONDON, Dec 5 (Reuters) - Ukraine's latest bid to swap its GDP warrants for new bonds is "significantly more appealing" than previous proposals and is likely to lure many of the holders, Citi said in a note on Friday.

Kyiv launched its offer on Monday to swap $2.6 billion in GDP-linked warrants for new "C" bonds for those who back the deal, a crucial step for the war-ravaged country to emerge from a debt default prompted by Russia's 2022 invasion.

A key group of creditors said on Thursday that it could not yet back the plan, but said it was in discussions with the government and would issue another statement on Friday.

Citi's emerging markets strategist Nikola Apostolov said in a note that the terms of the new offer were markedly better than earlier proposals.

"We see the "C" bonds package as significantly more attractive and would expect a high take-up among warrant holders," Apostolov wrote. (Reporting by Libby George; Editing by Dhara Ranasinghe)

More Fixed Income News

Michigan Consumer Sentiment Index Rise More Than Expected in Preliminary December Survey BY MT Newswires |ECONOMIC 10:20 AM EST
US consumer sentiment improves in early December BY Reuters |ECONOMIC 10:17 AM EST
US consumer spending moderates in September BY Reuters |ECONOMIC 10:09 AM EST
US consumer spending moderates in September BY Reuters |ECONOMIC 10:07 AM EST

All Fixed Income News

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.

© 1998 – 2014 FMR LLC.

All rights reserved.

fir_news_article