Worst Slump Since May Cuts Putin Bond Advantage: Russia Credit

Russia, the world’s biggest energy exporter, is losing its borrowing cost advantage over the rest of emerging market nations as weaker economic growth and faster inflation send bonds to their biggest monthly slide since May.

The average yield on Russian dollar bonds climbed 19 basis points, or 0.19 percentage point, in November, the biggest increase in six months, to 5.81 percent, according to JPMorgan Chase & Co.’s Corporate EMBI Russia Blended Yield Index. Russian government yields are 20 basis points below the average of 22 developing nations in JPMorgan Chase & Co.’s EMBI+ Index of sovereign debt, down from a 15-month high of 105 basis points in February.