Ukrainian sovereign bonds surged following Trump's victory as investors anticipate peace talks, according to the Financial Times.

Sovereign bonds of Ukraine have increased in value following Donald Trump's victory in the U.S. presidential elections, as investors anticipate a quicker end to the war.

Source. This is reported by the Financial Times on November 14.

In the past month, Ukraine's dollar bonds have risen by 12%, according to FT, as investors expect Trump to push for a ceasefire, which could accelerate the start of Ukraine's recovery and its ability to service debts.

The publication notes that the surge in Ukrainian bonds began in mid-October when markets started to believe in Trump's victory.

Trump has promised to end the war "within 24 hours," raising concerns that he might pressure Ukraine into painful territorial concessions to achieve a swift peace deal.

Bonds appreciated after an agreement reached in September between Ukraine and its creditors to restructure over $20 billion of international debt.

The deal reduced Ukraine's national debt by $9 billion, allowing it to avoid default and helping its economy stay afloat amid the full-scale war with Russia.

The country's bonds maturing in 2036 have risen from 44 to 49 cents per dollar in the last month, FT reports.

GDP warrants have also soared to a record level since Russia's invasion in February 2022 following Trump's victory.

Not all investors view Ukraine's recovery prospects as positively. Federated Hermes portfolio manager Mohamed Elmi told FT that "there are still significant unanswered questions" regarding the country's future after any potential negotiated settlement.

FT also reported that bonds owned by the state operator "Ukrenergo" have surged by more than 160% to 67 cents per dollar.

Last week, Bloomberg reported that "Ukrenergo" announced a suspension of payments on its dollar bonds, which are due in 2028, and will be seeking a restructuring deal with creditors.

Background. As reported on November 6, Ukrainian securities rose to their highest levels since 2022 amid Trump's victory.