Friday 29 August 2014

Ukraine Invasion Claims Wipe Out Russia Bondholder Gains - Bloomberg

Ukraine Invasion Claims Wipe Out Russia Bondholder Gains - Bloomberg:



"U.S. assertions that President Vladimir Putin’s troops have crossed into Ukraine are rekindling the threat of sanctions and fanning a selloff in Russian assets. 




Benchmark government ruble bonds due in February 2027 tumbled the most since March yesterday, wiping out this month’s gains, while the Russian currency slumped to an 11-year low versus the dollar. The cost of insuring the sovereign’s dollar bonds against non-payment with credit-default swaps soared to a five-year high relative to the world’s largest emerging markets.



Sentiment turned after Ukraine President Petro Poroshenko said Russian troops have “de facto” entered his country, two days after he met Putin for talks. Russia is showing a “pattern of escalating aggression,” according to U.S. State Department spokeswoman Jan Psaki. The moves boost the case for sanctions, said Edwin Gutierrez of Aberdeen Asset Management Plc."



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