Halister News

(Bloomberg) -- “The GDP warrants have lagged the recovery in the UAH and Ukraine sovereign bonds,” analysts at Bank of America Merrill Lynch including Arko Sen say in research note.

• NOTE: Hryvnia advnanced 3.3% in past mo.; Cbank began easing capital controls yday
• GDP indicators suggest improving trend: BofAML
• Calculates implied yield of warrants at 12%-15%
• “We expect that once data start showing a recovery in the dollar level of nominal GDP, warrants will attract more interest”
• Among Eurobonds, favors bonds maturing in 2019 on recent underperformance of short end of curve
  • NOTE: yld on 2019 bond -2bps to 9.46% at 12:54 p.m. in Kiev; yld on 2027 bond little changed at 8.83%
• Expects new cabinet “to still have sufficient momentum to meet the requirements of the IMF”