Ukraine Bond Rally Has Legs as GDP, Flows Improve, BofA Says
- BofA reiterates overweight call on Ukraine’s external debt
- Bank sees more market-positive scenarios in debt restructuring
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Ukraine’s international bonds have had their biggest weekly gain so far this year and analysts at Bank of America Corp. see more upside ahead.
Bank of America affirmed its overweight recommendation for Ukraine’s external debt, saying that better-than-expected economic output data are set to improve debt ratios. The war-torn country is also benefiting from more robust foreign aid flows, accumulation of currency reserves as well as “reduced risk of ‘worst-case’ conflict scenarios,” according to a research note Friday.