Russia’s Credit Risk Surges as Putin’s Demands Renew Default Fears
- Credit swaps signal 87% chance of default within five years
- Concerns about gas supply follow several dollar bond payments
This article is for subscribers only.
The cost of insuring Russian debt surged on Thursday after President Vladimir Putin demanded ruble payments from “unfriendly” nations for gas purchases.
Credit-default swaps protecting $10 million of the government’s bonds for five years were quoted at about $6.4 million upfront and $100,000 annually, according to ICE Data Services. That implies an 87% probability of default, compared with about 60% at the end of last week.