Flash notes

Last week, quotes for CDS for Ukrainian government debt experienced a decline of 75.1 basis points (by 11.1%) – from 674.9 b.p. to 599.8 b.p. At the same time, the Ukrainian CDS quotes were very volatile and reached a peak of 689.2 b.p. during the last week. Ukrainian CDS were influenced by external factors such as the global rebound after correction in world markets.

Last week, quotes for CDS for Ukrainian governmental debt increased by 102.1 basis points (or by 17.8%), from 572.8 b.p. to 674.9 b.p. This increase arose from increasing pessimism about the solution to European governments’ debt problems; thus CDS for Russian and Argentinean governmental debt also rose , by 37.0% and 40.9%, respectively.

Coming back from Landkom’s operations, we decided to update our recent valuation of Landkom because of our improved outlook on financing availability and 2010–2011 operational results. We consider that stocks in Landkom though risky provide investors with high yield investment opportunity. We recommend BUYing stocks in Landkom with a fair price at USD 0.19 per share.

Last week, quotes for CDS in the Ukraine experienced a drop of 62.4 basis points – from 635.2 b.p. to 572.8 b.p. Such a drop is connected with news about increasing optimism about the solution to the Greek problems; thus CDS for Russian, Kazakhstani and Argentinean government debt declined as well, by 59.8 b.p., 60.1 b.p. and 147.3 b.p. respectively.

After a recent 3-month rally on both Ukrainian equity and debt markets (the UX Index increased by 62% in the past 3 months, while yield on the Ukraine-11 Eurobond issue YTM dropped from 11.1% to 5.3%) we still see the opportunities for both aggressive and conservatively-oriented investors. BUYing domestic government bonds (OVGZs) is our top idea in the field of fixed income and with this flash note we present the rationale.

Last week, quotes for CDS in Ukraine experienced a significant increase of 38.1 basis points – from 504.9 b.p. to 543.0 b.p. We think that this correction, after the recent rally, is connected with investor’s attitudes towards fixed income, given the background of increasing of apprehensions of Greece default.

Last week, quotes for CDS in Ukraine experienced a significant drop of 113.8 basis points – from 618.7 b.p. to 504.9 b.p. Investors’ optimism was supported by a positive news background – the successful placement of Ukreximbank’s new issue with USD 500 mln volume, and and a favorable offer from MHP to exchange its Eurobonds maturing in 11 into new issue maturing in 15.

Last week, quotes for CDS in Ukraine experienced a significant drop of 113.8 basis points – from 618.7 b.p. to 504.9 b.p. Investors’ optimism was supported by a positive news background – the successful placement of Ukreximbank’s new issue with USD 500 mln volume, and and a favorable offer from MHP to exchange its Eurobonds maturing in 11 into new issue maturing in 15.

Last week, quotes for CDS in Ukraine experienced an insignificant drop of 2.7 basis points – from 640.2 b.p. to 637.5 b.p.

Last week, CDS quotes in Ukraine experienced a growth of 13.7 р.p – from 630.6 b.p. to 644.3 b.p. It seems that investors took a pause after a rally that lasted more than two months on the Ukrainian CDS market, which resulted in a reduction of CDS quotes from more than 900 b.p. to the current level of 644 b.p.