Ukrainian Eurobonds have been among the worst performers in emerging market securities, as investors’ hopes for a ceasefire have not materialized.

Those investing in Ukrainian dollar-denominated Eurobonds have lost more than 10% since the start of 2025, marking the worst performance among emerging markets, as the prospects for US President Trump to fulfill his promise of a ceasefire in the Ukrainian-Russian war grow increasingly illusory.

At the beginning of the year, expectations for a ceasefire made Ukrainian debt one of the most attractive in the market; then, the price of some Ukrainian Eurobond issues soared by almost 100% following the state debt restructuring in August 2024. Currently, Bank of America Corp. still views Ukraine’s external debt as undervalued but warns of “downside risks” to its value as the fighting continues.

In recent days, Ukrainian dollar bonds have repeatedly ranked among the worst performers in emerging markets. Zero-coupon bonds due in 2035, which are tied to Ukraine’s economic performance, were trading just above $0.5 per $1, compared to around $0.7 in February.