Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer

Posted by Alec Cope | May 17, 2014 |

Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer

www.zerohedge.com

The bailout floodgates are open and the US taxpayer is footing the bill once again – whether through IMF loans or more directly. Today saw Ukraine issue $1 Billion 5-Year Notes at a stunningly low risk of only 28bps above US Treasuries and dramatically cheaper than the cost of capital in the public markets (and from the IMF) which yield over 10%. The reason for the 1) low cost, and 2) actual ability to raise debt… the bond is guaranteed by the US Agency for International Development and “assures full repayment of principal and interest” based on the full faith and credit of the US (Taxpayer). We assume Gazprom will be happy…

*UKRAINE $1B 5Y NOTES LAUNCH AT +28
So why not pile into these bonds? 28 extra basis points for no apparent additional credit risk… some liquidity risk but we are sure your friendly local central bank will enable you to swap them for infinitely rehypothecatable cash with no haircut…

They’re gonna need moar… (and this does not include Gazprom)

Continue reading …

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Alec Cope

After years of research and a series of unpleasant experiences concerning the current child protection services system, Alec Cope decided to combat the cancerous corruption through information. Freelance writing articles as a form of protest and distributing them throughout his former high-school and local area, Alec struck special chords with whomever he was in contact with. Alec has been involved in activism such as sit down protests as well as Idle No More gatherings. Being independent for the majority of his time, Alec became a member of the WeAreChange family to assist one of the organizations that inspired him to become active in the first place. With a larger platform and positive support Alec has committed the majority of his time to research, writing, and maintaining social media with the goal to continue expanding the awakening sweeping throughout all levels of society. Growing up within a rural area in Northern Michigan as well as being a native American descendant, Alec is seeking to expose environmental abuse in his state as well as globally. A high-school dropout, Alec chases his passion for writing and empowering individuals while showing any isolated person that they too can overcome the odds with a community that will support them. Alec lives in the lower peninsula of Michigan near Kalamazoo. https://www.facebook.com/alec.cope.75 alecope8@gmail.com https://www.twitter.com/AlecCope http://www.pinterest.com/aleccope75/

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