Ukraine’s Corporate Debt Yields Surge as Tensions Escalate
Photographer: Aleksey Filippov/AFP/Getty Images
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Ukrainian corporate debt yields jumped as Russian President Vladimir Putin recognized two self-proclaimed separatist republics in eastern Ukraine.
Poultry producer MHP SE saw yields jump to 14% for bonds due in April 2026 as prices sank to 79 cents on the dollar from 91 on Friday, according to data compiled by Bloomberg. Dollar bonds of steelmaker Metinvest B.V. with similar maturity fell to 79 cents, sending yields to 16%.
The move follows a broad selloff across global markets as investors weighed the possible scope of Western sanctions.
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Of 45 euro- and dollar-denominated corporate bonds from Ukraine, 23 worth a total $9.3 billion are trading at distressed levels, according to data compiled by Bloomberg.
Ukrainian and Russian markets have been battered this year by escalating tensions along the border. The total return on Ukraine’s corporate debt this year is negative 13%, the biggest in emerging markets, as of yesterday. In Russian corporate debt, the loss is 4.7%, according to a Bloomberg index
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