Sunday, May 31, 2009
Russian Fixed Income market is in the tough shape. 49 bonds have been defaulted in 2009. Bad debt amount according to RBC exceeds 80 bln rubles. Total lack of risk management, bad assets in the balance sheets of major investment firms in Russia and negative (-1…..-55%) performance throughout the industry make Russian government to create a “Russian Mutual Fund” to accumulate all defaulted bonds from private institutions. Jokingly saying, Russians are trying to found a “toilet fund” to flush all bad bonds at the expense of Russian taxpayer. Is this good news? Find more in our May 09’s Newsletter.
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1 comments:
While it is tricky to predict specific low and high points, I believe the market might have reached its nadir a while back considering global markets appear to have at least stabilized with some perceptible improvement happening. Regarding Russia specifically, global commodity prices, energy prices specifically, should continue to have a positive impact upon the economy.
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