Russia-Tied Structured Note Buyers See Profits in Volatile Ruble - Bloomberg:
"Buying securities tied to anything Russian looks increasingly risky. The ruble crashed to a record low on Dec. 16. The price of oil, a main export, has plunged. The cost to buy credit swaps to protect against a Russian debt default has jumped 250 basis points this year to 413 basis points.
Santiago Braje, head of emerging markets credit trading at ING Groep NV in London, agreed to talk about what all that means for credit-linked note investors, who have bought $1.01 billion of securities linked to the country or one of its companies in 2014. ING has sold $427.5 million of notes tied to Russian entities this year, the most of any bank, Bloomberg data show.
Q: Who’s been buying these notes? What’s the appeal? A: Demand for the CLNs in rubles tends to be from local markets, primarily from institutional investors. There is also interest and demand from private banks globally. Those tend to be more in hard currency."
'via Blog this'
No comments:
Post a Comment