CEE Bonds

Sharp falls in Russian stock markets offered opportunities for brave investors. Some have already moved in to snap up bargains but investors fallowing in their wake may now be too late Those waiting for an opportunistic moment to buy into Russian equities may be a little late: the real bargains have already gone.

Ukraine has printed its $1bn five year bond back by US-AID, with investors hoping that the US government will see this as a more regular financing tool for Ukraine as the country faces the threat of civil war in the eas of the country and a high level of redemptions over 2014-2015.

Rival bankers are suggesting that the mandate for the Ukraine US-AID backed deal may be a poisoned chalice for JP Morgan and Morgan Stanley's EM bond businesses if a resurgence of Russian issuance comes sooner than is widely expected.

The splintering of Ukraine could have a big impact on the country’s bonds, according to an analyst who warns that debt might have to be reissued or even defaulted on if the country continues to lose regions to independence — or Russia.

Russian bond volumes have been hit hard since the beginning of the Ukraine crisis, but rotation into the rest of EM has brought hope to DCM bankers

Putin’s Ukraine gamble might have paid off from a political standpoint — his popularity at home has soared since the annexation of Crimea — but it is in real danger of wrecking an already weak Russian economy.

Turkey dominates the sukuk scene in central and eastern Europe via the sovereign and participation banks. But the Czech Republic has emerged as another possible breeding ground for Islamic finance

Tensions between ex-finance minister and prime minister could hamper Croatia’s economic reforms — and bond market return

Bankers expect a swathe of Russian corporate liability management trades to follow steel company Severstal releasing results of its tender offer on Wednesday evening.

Ukraine has mandated JP Morgan and Morgan Stanley to price a $1bn US government guaranteed bond, according to two DCM officials away from the deal.

Kazakhstan Temir Zholy (KTZ), the state rail company of Kazakhstan, mandated banks on Wednesday to arrange investor meetings in Switzerland and Kazakhstan ahead of a possible debut Swiss franc deal. No Kazakh issuer has ever sold Swiss franc denominated debt.

Montenegro’s new €280m five year bond was bid four cash points higher in the grey market on Wednesday morning as under allocated investors chased paper in the secondary market.