Since the beginning of 2025, investors in Ukraine’s dollar-denominated Eurobonds have experienced losses exceeding 10%, marking the worst performance among emerging markets. This occurred amid growing doubts about U.S. President Donald Trump’s ability to fulfill his promises regarding a ceasefire in the Ukrainian-Russian war.
This is reported by Finway
At the start of the year, expectations for peace negotiations made Ukrainian debt attractive, as the price of some Eurobond issues rose by nearly 100% following the restructuring of state debt in August 2024. However, the situation has changed, and Bank of America Corp. now considers Ukraine’s external debt undervalued but warns of potential “downside risks” to its value amid prolonged hostilities.
It is worth noting that Ukraine’s dollar bonds have repeatedly ranked among the worst in emerging markets during several days last week. In particular, zero-coupon bonds maturing in 2035, whose payments depend on Ukraine’s economic performance, were trading at just above 50 cents on the dollar, compared to around 70 cents in February.