BofA Finds Value in Ukraine Bonds as Restructuring Seen on Track

  • Ukraine needs creditor deal before debt freeze ends in August
  • Nation’s dollar bonds have been sliding for over a week
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Ukraine’s dollar bonds offer notable upside as the nation remains on track to agree a restructuring deal with creditors following a breakthrough on a $61 billion US aid package, according to strategists at BofA Securities.

The notes have been weakening across the curve as bondholders face tough talks with the war-torn nation about another overhaul. The parties will have to secure a deal before the end of August, when a two-year payment freeze agreed by holders of $20 billion of outstanding bonds ends.