The Moral Quandary Of Russian Debt
Bloomberg Businessweek|April 04, 2022
The country is fast becoming a case study in distressed investing. Who’s buying? Capitalism’s finest
Erik Schatzker
The Moral Quandary Of Russian Debt

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.

Denne historien er fra April 04, 2022-utgaven av Bloomberg Businessweek.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra April 04, 2022-utgaven av Bloomberg Businessweek.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BLOOMBERG BUSINESSWEEKSe alt
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

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

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

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.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

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

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

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

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023