Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Ruble depreciation, Western sanctions and collapsing commodity prices have sent Russian companies' hard currency bonds tumbling to multi-year lows and there is very likely more stress ahead.Russian yield spreads on the CEMBI corporate debt index have almost doubled this year to around 788 basis points over U.S. Treasuries, though the index itself has barely budged. Since end-November, a ruble rout has seen the spreads widen by more than 100 basis points, astonishing levels for mostly investment-grade credits.Energy exporter Lukoil for instance, not sanctioned and benefiting from ruble weakness, has seen its 2017 dollar bond fall 12 cents from midyear levels. State-run Rosneft's 2022 bond is trading at 76 cents in the dollar, having fallen more than 15 cents since JuneBonds from big state-run lenders Sberbank, VEB and Russian Agricultural Bank are down 5-10 cents since June.
FOLLOW THIS ARTICLE