Studying the diverging paths of Ukraine and Pakistan bonds in the emerging market sell off, Ash concludes that Ukraine – without an IMF deal and without its financial ‘A Team’ – is paying a 150 basis points penalty. One month ago — before the coronavirus market meltdown and Ukraine’s cabinet purge – Ukraine’s 8-year government bonds were trading at yields of 5.62%. “Now it is 9.4% and heading back into double digits,” he writes. “The cost was likely 150bps on borrowing costs,” he writes. “On $84 billion of debt, that’s $1.26 billion.”
Studying the diverging paths of Ukraine and Pakistan bonds in the emerging market sell off
