Russian Debt Default Now Very Likely After US Payment Block: BlueBay
Timothy Ash said US bondholders would likely be hurt by the Treasury's move, but said it's "their own fault" for investing in Russian bonds.
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Timothy Ash said US bondholders would likely be hurt by the Treasury's move, but said it's "their own fault" for investing in Russian bonds.
Some investors have been attracted to Russian debt by extremely low prices and by signs of progress in Ukraine peace talks.
Buying back dollar-denominated bonds in rubles would also ensure that local investors are paid in full, analysts said.
The Russian government has a few tricky tests coming up, with a $2 billion bond maturing in early April.
Russia has so far defied the expectations of many investors and kept up its payments on its foreign debt, despite tough sanctions.