Lates News

Due to dim prospects for a peace agreement brokered by Trump, Ukrainian dollar bonds have brought investors over 10% in losses since 2025, making them the worst performers in emerging and frontier markets. Some Ukrainian bonds almost doubled in price since a ceasefire bet in August last year and boosted the entire Eastern European market. London hedge fund Frontier Road has shifted to corporate bonds to avoid geopolitical risks, and although Bank of America maintains an overweight recommendation, it warns of "downside risks" from continued conflict. Morgan Stanley expects the conflict to last until 2025. "The market has fallen back to pre-election levels of Trump," said Viktor Szabo, director of Aberdeen Investments. Warsaw, Prague, and Budapest's main stock indexes have all seen USD-denominated returns of over 30% this year, with the Hungarian forint, Czech koruna, and Polish zloty leading the gains in emerging market currencies. However, the price of Ukrainian zero-coupon bonds due in 2035 has fallen from 70 cents in February to 50 cents.