• Latest
  • Trending
Russian bonds would weather sanctions

Russian bonds would weather sanctions

Investors caught off guard as Bank of Canada’s inflation indicator fails

BoC sets rates to two-decade peak with room for more

US markets’ slump deepens to a half-year peak; its consequences

US markets’ slump deepens to a half-year peak; its consequences

Dollar edges up as jolt from Fed minutes wanes

Dollar unflinchingly holds position amid uncharted numbers

Deutsche Bank snapped by Credit Suisse

Timeline until: Credit Suisse stumbled and UBS went to its aid

Relentless debt: US loans are dragging; root cause multiplies

Relentless debt: US loans are dragging; root cause multiplies

UK to slash bond issuance

Banks toss bets for high-jeopardy bonds

Support measures push Japanese corporate bankruptcies to 50 year low

Policymaker assembly ends with yen standing upright

Presently placid, the Fed is readying another shock

Presently placid, the Fed is readying another shock

Minor investors rejoice upon Chinese market rebound

Minor investors rejoice upon Chinese market rebound

China, US working hard on solution to audit dispute

US analysis of Chinese costs will not rely on the bloom time

Trend-setter Shein on Mexico expansion ideals

Trend-setter Shein on Mexico expansion ideals

Chip firm CXMT in dire straits with legislators chasing tails

Chip firm CXMT in dire straits with legislators chasing tails

Global Business Review Magazine
Saturday, June 10, 2023
Nominate Here
  • Home
  • Banking
  • Finance
  • Technology
  • FinTech
  • Business
  • Videos
  • Events
  • Awards
  • Magazine
No Result
View All Result
Global Business Review Magazine
No Result
View All Result

Russian bonds would weather sanctions

Russian bonds would weather sanctions

Any tightening of western sanctions on an already stressed Russian domestic bond market would make borrowing more expensive for the government. A deputy finance minister stated this and also said that this can cause significant short-term volatility.

But a strong domestic investor base means the market, is where a politically driven selloff has sent benchmark. Timur Maksimov said in an interview that this yields to six-year highs, would weather tougher curbs. And also added that the ministry’s 2022 issuance plans remained on track. Russia has massed around 100,000 troops near the Ukrainian border. This is while denying it plans to invade. If it does, western countries have threatened new financial and economic sanctions. Under existing sanctions, U.S. investors are banned from buying new OFZ bonds. And also, the U.S. banks are banned from buying sovereign Eurobonds directly from Russia.

YOU MAY ALSO LIKE

Trend-setter Shein on Mexico expansion ideals

U.S. advisory Mintz’s officials depart city after raid

U.S. officials have floated the possibility of extending the bans to cover secondary market trading of new issues of both instruments. With 10-year yields at their highest since 2016, the finance ministry cancelled scheduled OFZ auctions. Maksimov said that the auctions will resume once the market normalises. This also adds that its current volatility was driven by politics rather than economics. A situation like this cannot stay forever. With a record-high current account surplus of $120 billion last year, enough gold and forex reserves to cover two years of imports or Russia’s entire external debt, officials say the economy is in a good shape to withstand shocks.

Maksimov said that the market would ride out disruption caused if foreign investors sold all their OFZs. This is equivalent to just under a fifth of total holdings. He said that new sanctions will cause serious short-term volatility. But it will fundamentally change nothing. Because even if they wash 19% out of the portfolio, they still have 80%. The finance ministry still plans to raise 3.3 trillion roubles in OFZ bonds this year. This is by re-introducing bonds with floating-rate coupons in addition to its main fixed-coupon OFZs.

The ministry raised a record 5.3 trillion roubles in OFZ bonds in 2020. In this, over a 3 trillion was secured by floaters. Last year, borrowing halved to 2.6 trillion roubles, with no floaters issued. When re-introduced, floating-rate bonds will not exceed 25% of the total OFZ stock in the medium term.

Tags: businessEurobondsRussiaUkrain
ShareTweetShare

Search

No Result
View All Result

Recent News

Investors caught off guard as Bank of Canada’s inflation indicator fails

BoC sets rates to two-decade peak with room for more

US markets’ slump deepens to a half-year peak; its consequences

US markets’ slump deepens to a half-year peak; its consequences

Dollar edges up as jolt from Fed minutes wanes

Dollar unflinchingly holds position amid uncharted numbers

Deutsche Bank snapped by Credit Suisse

Timeline until: Credit Suisse stumbled and UBS went to its aid

Relentless debt: US loans are dragging; root cause multiplies

Relentless debt: US loans are dragging; root cause multiplies

UK to slash bond issuance

Banks toss bets for high-jeopardy bonds

Global Business Review Magazine

Global Business Review is a online print magazine focusing on the updates and information about on emerging markets, Finance, Banking, Technology. Global Business Review provides news, features, analysis, commentary, and interviews from industry across the globe.

Recent News

  • BoC sets rates to two-decade peak with room for more
  • US markets’ slump deepens to a half-year peak; its consequences
  • Dollar unflinchingly holds position amid uncharted numbers
  • Timeline until: Credit Suisse stumbled and UBS went to its aid
  • Relentless debt: US loans are dragging; root cause multiplies

Categories

  • Banking
  • Business
  • Events
  • Finance
  • FinTech
  • Tech
  • Uncategorized
  • Videos
  • About
  • Nominate
  • Privacy & Policy

© 2023 Global Business Review Magazine - All Rights Reserved.

No Result
View All Result
  • Home
  • Banking
  • Finance
  • Technology
  • FinTech
  • Business
  • Videos
  • Events
  • Awards
  • Magazine

© 2023 Global Business Review Magazine - All Rights Reserved.

Go to mobile version