You're reading: Some investors believe Ukrainian government bonds are good investment

Some foreign investors have recently staked on Ukrainian government bonds despite difficult negotiations between Kyiv and its creditors, according to the Wall Street Journal.

In particular, they include Pioneer Investments, which manages assets worth $244 billion.

Pioneer bought extra Ukrainian government bonds last week, increasing its investment to $75 million.

According to Bloomberg, Ukraine’s two-year eurobonds in July showed the highest growth in rates since May 2014 – 7.7 cents, to 56.21 cents per $1 of face value.

According to Yerlan Syzdykov, who is responsible for Pioneer Emerging Markets Direction, the company expects a “relatively peaceful outcome” of negotiations between Ukraine and its creditors, which will further increase the cost of the country’s government bonds.

In recent months, U.S. DuPont Capital Management invested $80 million in Ukrainian bonds, or 8 percent of its investment portfolio in emerging markets.

However, there are those among the investors who believe it is too early to enter the Ukrainian market or increase their existing investment: Kyiv will have to repay eurobonds worth $500 million on Sept. 23.

Senior Portfolio Manager at Schroders Plc Alexander Moseley said that he had previously acquired Ukrainian eurobonds, but now believes that the outcome of the negotiations is too vague to continue such operations.