Hold on to what you’ve got: We maintain our Hold recommendations on Ukreximbank (EXIMUK) bonds. Spreads have tightened significantly since the start of the year, but we think improved capital and liquidity metrics support current valuations. Following the conclusion of a tender offer by First Ukrainian International Bank (PUMBUZ), attention has turned to state-owned lenders. Good liquidity metrics and a dearth of new lending opportunities may support the case for some form of liability management. The bank added UAH10bn to cash and equivalents in the second quarter, and these funds now account for 18% of total assets. Further, the bank’s loan book shrank in H1, and loans now make up less than 34% of total assets.