Bond Traders Have Already Downgraded Russia to a Nation of Junk
- More than 75% of Russian high-grade firms trade at junk levels
- Rating companies are preparing to take sweeping action
People line up at an ATM in the Aviapark shopping mall, in Moscow, on March 3.
Photographer: Konstantin Zavrazhin/Getty Images
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Bond traders are delivering a swift, punishing verdict on the expected hit to Russian corporations from the Ukraine war. In short, it’s turning the country into a nation of junk bonds.
With Russia increasingly isolated by sanctions and widespread international condemnation, the prices of bonds issued by a broad spectrum of companies have tumbled as investors race to the exits.