Russian Eurobond sale message to West of sanctions lack of effectiveness

2017/6/19 12:11:11

Ash: “…the message from Moscow…we can still access markets, despite sanctions.”


LONDON, June 19, 2017 (UBO) – Responding to an announcement that Russia plans sale of Eurobonds, Timothy Ash of Bluebay Asset Management offered the following comments at 10:52 today:


Part of USD7bn external borrowing programme. Assume on the same terms as last year's Russian settling instrument.


Driven more by politics, than finance/economics as they don't really need the money, but I think this is to send a message to the West that they can still issue, despite little progress in moderating sanctions. Russia will be eager to sell the line that lots of foreign institutional investors participated, itself as a sign of confidence in Russia itself.


There was a sense that they would wait with issuance until after sanctions eased, to get better pricing, but by coming now I guess it signals that they assume no early sanctions moderation. But the message from Moscow will be so what, we can still access markets, despite sanctions.




** Please note that any views expressed herein are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions. The views expressed do not reflect the opinions of all portfolio managers at BlueBay, or the views of the firm as a whole. In addition, these conclusions are speculative in nature, may not come to pass and are not intended to predict the future of any specific investment. No representation or warranty can be given with respect to the accuracy or completeness of the information. Charts and graphs provided herein are for illustrative purposes only.”

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