Economics

Ukraine Peace Talks No Cause for Bond-Investor Optimism

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Buying Russian and Ukrainian bonds is a high-risk bet as investors say peace talks scheduled for this week are unlikely to resolve the almost year-old conflict.

“Zero probability” there will be a resolution, said Paul McNamara, who helps oversee $6.3 billion of debt at GAM UK Ltd. in London. “We were pessimistic, we’re still pessimistic. More sanctions are likely, and the chance of capital controls is rising.”