Wall Street doesn’t usually let moral dilemmas get in the way of making money. There’s almost always a bidder for whatever security is on offer, no matter how dodgy the issuer, how funky the structure, or how unpleasant the circumstances. Russian President Vladimir Putin’s invasion of Ukraine is no exception.
Even before the missiles started raining down on Kyiv, the financial opportunists who prey on market dislocation were already hunting for bargains in Russian bonds. They had plenty to choose from. Almost all of Russia’s debt, both sovereign and corporate, remains open for trading under U.S. economic sanctions. And, because demand has collapsed, the yields on all that paper are now among the highest in the world.
One government bond that matures in September 2023 was recently quoted at 48¢ on the dollar. If Russia honors its foreign debt—and so far it has—anyone who buys today stands to earn a return of at least 108% in only 18 months.
Needless to say, there’s no small amount of risk involved. The battle for Ukraine may drag on for months, if not years. The theater of war may expand to include NATO members. Putin may resort to chemical or nuclear weapons. But what if buying Russian debt is a risk worth taking? While the world recoiled in horror at the sight of bombed-out hospitals and civilians sprawled dead in the streets, many hedge fund managers asked that question and salivated at the thought of a payday so huge it could be the biggest in a generation.
Diese Geschichte stammt aus der April 04, 2022-Ausgabe von Bloomberg Businessweek.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der April 04, 2022-Ausgabe von Bloomberg Businessweek.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers