Daily review of the debt markets. Eurobonds: Decline Slowed Down. Primary Market: VTB Perpetual Bonds Attractive for Investors. Commentary: Alrosa

Decline in Russian Eurobonds slowed yesterday despite weak statistics from Europe and falling stock markets. Dynamics in most corporate and sovereign issues didn’t exceed 0.1%.
In the morning external background was neutral: European stock markets opened slightly up; Brent decline didn’t exceed 0.2%, while Russia-30 decreased 0.1%. Among significant news we should note the publication of UK Q2 GDP (the estimated economic decline was 0.2%). However, the most important macroeconomic statistics will be released on Friday, namely US Q2 GDP. Until then flat dynamics will probably prevail in markets.
Today VTB reported the details of perpetual bonds placement. The benchmark yield totals 9.5-9.75%. The first put-option has been preliminarily set in 10.5 years. This yield offers a premium of 330 b. p. to the yield curve o VTB, which is very attractive for investors.

Trading Ideas in the Bond Market

Eurobonds:

Strategy Buy & hold:

Russian Standard-17
Ukraine-13
Promsvyazbank-14, Promsvyazbank-15
TCS Bank-14
HCFB-14
Renaissance Capital-13
KKB-13, KKB-14