Ukraine Election Carries Peril for Dollar Bondholders
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Ukraine government bond investors are preparing for next week’s parliamentary elections, which polls show will consolidate power with President Petro Poroshenko, by sending yields to record highs.
Poroshenko’s party is leading opinion polls before the Oct. 26 vote with pledges to end an almost seven-month insurgency in eastern Ukraine, revamp the Soviet-era economy and boost ties with the European Union. While he has eased tension with Russia, investors have been ruffled by reports from Goldman Sachs Group Inc. and BNP Paribas SA saying they risk losing about a half of their holdings should there be a debt reorganization.