Putin’s Crimea Playbook Condemns Bonds to Losses: Russia Credit - Bloomberg

Putin’s Crimea Playbook Condemns Bonds to Losses: Russia Credit - Bloomberg:



"Russian government bonds, among the casualties of President Vladimir Putin’s maneuvering in Ukraine, are set to extend declines that have made them the world’s worst performers.



Ruble-denominated bonds, known as OFZs, have lost 14 percent in dollar-terms this year, the most among 31 countries in the Bloomberg Emerging Market Local Sovereign Index. The yield on the benchmark February 2027 security climbed 16 basis points today to a record 9.57 percent, extending its increase this month to 121 basis points as pro-Russian forces gained control of Ukraine’s Crimean peninsula.



Worse is in store for the debt, as Putin risks relations with the West by threatening to annex Crimea from Ukraine, according to Aberdeen Asset Management Plc and GAM U.K. Ltd. As the U.S. and the European Union weigh sanctions, Goldman Sachs Group Inc. cut its forecast for Russian economic growth this year to 1 percent from 3 percent, writing in a report yesterday that “political tensions” are harming confidence."



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