MARKET SIGNALS 02.16.2021
IDEA #1: RUSSIA 28
The most liquid issue on the Moscow Exchange in the line of Eurobonds of the RF Ministry of Finance. The yield spread to UST remains wide (50 bp) relative to the dock levels, which creates potential for further price growth. Unlike Eurobonds of Russian banks and corporations, the bonds of the Ministry of Finance are completely devoid of ruble risk: when selling (redeeming) sovereign Eurobonds, the income in the form of exchange rate differences is exempted from paying personal income tax. From this point of view, sovereign Eurobonds are quite comparable to direct investment in dollars or euros (while the holder of the Eurobond also receives a coupon income). Due to the sanctions, the RF Ministry of Finance does not place new dollar-denominated eurobonds, which creates a shortage of securities with Russian sovereign risk as the issues mature. The peculiarity of the Eurobond maturing in 2028 is that, due to its very high coupon rate (12.7
MARKET SIGNALS 02.02.2021
IDEA #1:
RUSSIA 28
The most liquid issue on the Moscow Exchange in the line of Eurobonds of the RF Ministry of Finance. The yield spread to UST remains wide (50 bp) relative to the dock levels, which creates potential for further price growth. Unlike Eurobonds of Russian banks and corporations, the bonds of the Ministry of Finance are completely devoid of ruble risk: when selling (redeeming) sovereign Eurobonds, the income in the form of exchange rate differences is exempted from paying personal income tax. From this point of view, sovereign Eurobonds are quite comparable to direct investment in dollars or euros (while the holder of the Eurobond also receives a coupon income). Due to the sanctions, the RF Ministry of Finance does not place new dollar-denominated eurobonds, which creates a shortage of securities with Russian sovereign risk as the issues mature. The peculiarity of the Eurobond maturing in 2028 is that, due to its very high coupon rate (12
INVESTMENT IDEAS Today we will look at few debt securitiies as investment ideas for this week IDEA #1: RUSSIA 28 The most liquid issue on the Moscow Exchange in the line of Eurobonds of the RF Ministry.
INVESTMENT IDEAS Today we will look at few debt securities as investment ideas for this week IDEA #1: RUSSIA 28 The most liquid issue on the Moscow Exchange in the line of Eurobonds of the RF Ministry.
MARKET SIGNALS 12.22.2020
IDEA #1:
RUSSIA 28
The most liquid issue on the Moscow Exchange in the line of Eurobonds of the RF Ministry of Finance. The spread in yield to UST remains wide (50 bp) relative to the dock levels, which creates potential for further price growth. Unlike Eurobonds of Russian banks and corporations, the bonds of the Ministry of Finance are completely devoid of ruble risk: when selling (redeeming) sovereign Eurobonds, the income in the form of exchange rate differences is exempted from paying personal income tax. From this point of view, sovereign Eurobonds are quite comparable to direct investment in dollars or euros (while the holder of the Eurobond also receives a coupon income). Due to the sanctions, the RF Ministry of Finance does not place new dollar-denominated Eurobonds, which creates a shortage of securities with Russian sovereign risk as the issues mature. The peculiarity of the Eurobond maturing in 2028 is that, due to its very high coupon rate