Economics
Russia Loses Buyside Support for Eurobond After Banks Balk
- Union restricted from buying bonds from sanctioned brokers
- Reputational risk of deal is making funds wary: Allianz
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Russia’s attempt to return to global capital markets under sanctions is meeting resistance from the last place Finance Minister Anton Siluanov expected: Eurobond investors.
Europe’s biggest bondholders are being told by internal risk managers to avoid a new debt issue after regulators in the U.S. and European Union warned foreign banks off helping Russia sell its first Eurobond since 2013. Just like prospective underwriters for the new securities, money managers at Germany’s Allianz Global Investors Europe GmbH, Union Investment Privatfonds GmbH and Deka Investment GmbH are wary of coming to the attention of U.S. and EU regulators for the wrong reasons.