Russian Bank Bypass sanctions and dollar to pay bondholders in Rubles

[Golden Fleece]

JPMorgan, BofA Are Among Banks Moving Back Into Russian Bond Trading​

https://www.bloomberg.com/news/arti...g-banks-moving-back-into-russian-bond-trading

Seems the rich take care of themselves . Always exceptions made.

The title of the article is misleading. The narrow exception is only for investors who wish to liquidate and wind down their Russian bond positions. I see no problem with that.

Banks are now willing to broker transactions after the Treasury Department said it’s not a violation of US sanctions for individuals to wind down their positions, adding clarity on an issue that’s confused many people in the market. Bank of America sent a note to investors last week saying the trades are for those seeking to exit Russian debt holdings.

 

[Martin Everson]

Nothing misleading about it. There is a buyer at the other side of the trade.

 

[backpacker]

There is a buyer at the other side of the trade.

In this specific case most likely the debtor (with the help of gracious Western banks), buying back for a few Cents on the Dollar.

 

[Martin Everson]

In this specific case most likely the debtor (with the help of gracious Western banks), buying back for a few Cents on the Dollar.

Article says:

"Russian debt prices have rebounded in recent weeks as trading increases and locals look for assets to buy with money coming in from energy exports."


So its actually Russian corporates buying the bonds. Maybe the issuers as it mentions money from energy exports . Genius move the sanctions in this area have been. So western investors bought Russian bonds at potentially par value before the war and will get back far less than they paid. In simply terms they gave Russian companies a loan and will now get back a fraction of the loan they gave .

 

[backpacker]

In simply terms they gave Russian companies a loan and will now get back a fraction of the loan they gave .

Yes, and it was expected to happen exactly this way.
Let's all be greatful to the efficiency of sanctions and wise political moves of Western governments ...

 

[Martin Everson]

Sberbank and Gazprombank were excluded from the sanctions due to transactions with EU energy suppliers. The major Russian energy suppliers I guess could use those banks potentially to enter the bond market and buy back their own bonds on the cheap with money from their energy exports .