Raiffeisen Bond Rout Deepens as Swaps Show 70% Default Risk
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Bonds of Raiffeisen Bank International AG fell for a 12th day amid investor concern they may be forced to take losses as international sanctions and the slumping oil price undermine the lender’s business in Russia.
The bank’s 500 million euros ($570 million) of 4.5 percent subordinated notes maturing in February 2025 fell 2.6 cents on the euro to a record 48 cents, taking their decline this year to about 38 percent, according to data compiled by Bloomberg. Credit-default swaps on the lender’s junior debt signal a 70 percent probability of default within five years.