Against a wave of social unrest in
Kiev the cost of default isurance on Ukrainian national debt has
significantly grown. According to Bloomberg, default swaps on Ukrainian
government securities in the next five years have risen by 100 points
reaching 1071.
This
is the highest level of assessment of compensation for insurance of
non-payment of debt in the world after Argentina and Venezuela,
according to ITAR-TASS.
The level of Russia's similar insurance on eurobonds as of December 2, was six times as low and stood at 173,8 points.
The probability of default on Ukraine's government securities in the coming five years the investors assess as 53,3%.
«1071
points mean that when buying Ukrainian bonds $10 mln worth plus default
insurance, investors will have to pay 1,071 mln», - bond market analyst
at Raiffeisen Bank Denis Poryvay said.
By
this fashion, in five years the total amount of insurance proceeds will
exceed $5,3 mln, or, in other words, will amount to over a half of the
total bond cost.
The profitability of Ukraine's 10-year state securities in conversion to US dollars has risen on Monday up to 10,6%.
The
profitability of the dollar bonds with 2014 redemption has gone up to
19% - the maximum level since these papers had been issued in August of
2012.
No comments:
Post a Comment