Russia bonds rise, default risk tumbles

Bonds maturing in 2023 and 2043 extended their advance on Friday, and are quoted at more than double their price this time last week. Both are still trading at deeply distressed levels – at around half their par value. Meanwhile, Russian credit-default swaps yesterday imply a 48% chance of default within a year, according to CMAI data, down from 60% Thursday morning.(File pic shows Moscow stock exchange.)

MOSCOW: Russian dollar bonds rise, and the cost of insuring the nation’s debt against default dropped after people familiar with the matter said funds earmarked for interest payments on the Russian government’s dollar notes were sent to the payment agent.

Bonds maturing in 2023 and 2043 extended their advance on Friday, and are quoted at more than double their price this time last week. Both are still trading at deeply distressed levels – at around half their par value. Meanwhile, Russian credit-default swaps yesterday imply a 48% chance of default within a year, according to CMAI data, down from 60% Thursday morning.