Russia-Ukraine Tensions Spill Over Into Markets

The video discusses the underperformance of Ukrainian bonds compared to peers due to rising tensions between Russia and Ukraine. It highlights the impact on the bond market and the ruble, which has decoupled from oil prices due to political risks. The video also examines the bond markets in Ukraine and Russia, noting Ukraine's restructured debt and the demand for Russian assets despite sanctions.

What has been a significant factor in the underperformance of Ukrainian bonds?

• A decrease in global oil prices

• A new trade agreement with the EU

• Rising tensions between Russia and Ukraine

• Increased demand for Ukrainian bonds

Why is the Russian ruble's behavior considered unusual in the current market?

• It is rallying due to increased oil prices

• It is decoupled from oil prices despite oil rallying

• It is strengthening against the dollar

• It is unaffected by political risks

What could potentially cause a rally in the Russian ruble?

• A decrease in oil prices

• A new trade agreement with China

• Easing of tensions with Ukraine

• An escalation in the conflict with Ukraine

What is the current status of Ukraine's dollar debt?

• It has been completely paid off

• It has been restructured with about $15 billion outstanding

• It has increased due to new loans

• It remains unchanged from last year

Why are investors reluctant to sell their Russian bonds?

• Due to high inflation rates

• Due to a decrease in interest rates

• Because of increased demand and fewer bonds available

• Because of a new government policy