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Hedge Fund Veteran Jay Newman Says Russia’s Sovereign Debt Is Worthless

  • Distressed debt expert warns of risk in unusual bond contracts
  • At this point, debt payment by Russia is ‘optional,’ he says
Jay Newman
Jay NewmanPhotographer: Bloomberg

Jay Newman, the hedge fund veteran behind one of the lengthiest and most contentious sovereign debt battles in history, says there’s no opportunity to profit in Russian debt.

The former star fund manager at Elliott Management Corp., who helped billionaire Paul Singer win an epic 15-year fight against Argentina after its $95 billion default in 2001, says Russian government debt is likely worthless after a slew of sanctions were slapped on the nation for its invasion of Ukraine. He expects an imminent default.