Investors Anticipate Russian Reentry into Western Markets – Bloomberg
According to the outlet, traders anticipate that the nation's discounted securities will experience a significant increase in value following the lifting of sanctions.. source:TROIB RTS
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Traders are anticipating a significant increase in the value of the country’s discounted securities once sanctions are lifted, according to reports from the outlet.
Investors are discreetly placing their bets that recent efforts by US President Donald Trump to negotiate a peace agreement in the Ukraine conflict may pave the way for Russia’s reintegration into Western financial markets, as reported by Bloomberg on Thursday.
Since the Ukraine conflict escalated in 2022, the US and its allies have imposed multiple rounds of sanctions on Moscow, cutting off Western investments and sanctioning Russia's largest stock exchange.
Recently, traders at a London brokerage have begun expressing interest in acquiring Russian securities, which have largely been shunned over the past three years, according to Bloomberg. Their primary focus has been on purchasing dollar-denominated bonds issued by Gazprom, the Russian energy giant.
Investors are speculating that if sanctions related to Ukraine are lifted, the heavily discounted Russian securities could see a dramatic surge in value, the outlet reported.
“Investors understand that as soon as there’s a thaw, these discounts will collapse,” stated Iskander Lutsko, the Dubai-based head of research and portfolio management at Istar Capital, in his remarks to Bloomberg.
Money managers have indicated that sales teams are gauging interest in betting on the ruble using non-deliverable forwards, a financial derivative that allows for speculation on a currency’s future value without engaging in direct exchanges. This approach sidesteps current sanctions by avoiding the involvement of physical Russian assets or individuals.
Major US investment banks, such as Goldman Sachs and JPMorgan Chase, have reportedly been facilitating ruble-linked derivative contracts to accommodate the rising interest from investors in Russian-related assets.
“There’s an aggressive search for securities of Russian issuers around the world,” Evgeny Kogan, a Moscow-based investment banker, told Bloomberg. “Investors in general are asking how quickly they can enter the Russian market.”
The report suggests that Russia’s potential reinstatement into the Western financial framework could unlock hundreds of billions of dollars.
Jessica Kline contributed to this report for TROIB News
Investors are discreetly placing their bets that recent efforts by US President Donald Trump to negotiate a peace agreement in the Ukraine conflict may pave the way for Russia’s reintegration into Western financial markets, as reported by Bloomberg on Thursday.
Since the Ukraine conflict escalated in 2022, the US and its allies have imposed multiple rounds of sanctions on Moscow, cutting off Western investments and sanctioning Russia's largest stock exchange.
Recently, traders at a London brokerage have begun expressing interest in acquiring Russian securities, which have largely been shunned over the past three years, according to Bloomberg. Their primary focus has been on purchasing dollar-denominated bonds issued by Gazprom, the Russian energy giant.
Investors are speculating that if sanctions related to Ukraine are lifted, the heavily discounted Russian securities could see a dramatic surge in value, the outlet reported.
“Investors understand that as soon as there’s a thaw, these discounts will collapse,” stated Iskander Lutsko, the Dubai-based head of research and portfolio management at Istar Capital, in his remarks to Bloomberg.
Money managers have indicated that sales teams are gauging interest in betting on the ruble using non-deliverable forwards, a financial derivative that allows for speculation on a currency’s future value without engaging in direct exchanges. This approach sidesteps current sanctions by avoiding the involvement of physical Russian assets or individuals.
Major US investment banks, such as Goldman Sachs and JPMorgan Chase, have reportedly been facilitating ruble-linked derivative contracts to accommodate the rising interest from investors in Russian-related assets.
“There’s an aggressive search for securities of Russian issuers around the world,” Evgeny Kogan, a Moscow-based investment banker, told Bloomberg. “Investors in general are asking how quickly they can enter the Russian market.”
The report suggests that Russia’s potential reinstatement into the Western financial framework could unlock hundreds of billions of dollars.
Jessica Kline contributed to this report for TROIB News
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