Some Bond Investors Say Ukraine a Good Bet

Even as Ukraine remains mired in negotiations with creditors over a potential restructuring of its debt, a few hardy investors have recently bet on the conflict-torn country’s bonds.

• Pioneer Investments, which oversees $244 billion in assets, now holds about $75 million of Ukraine debt after buying more bonds last week.
• Wilmington, Delaware-based DuPont Capital Management has also built up a stake of $80 million in Ukrainian bonds in recent months, which represent 8% of its $1 billion emerging-market portfolio.

Last week, Ukraine met the deadline for a key $120 million coupon payment on its two-year bonds. The country’s two-year bonds now trade around 56 cents to the dollar compared with a low of 38 cents in March.

Source: http://www.wsj.com/articles/some-bond-investors-say-ukraine-a-good-bet-1438183828