Russia Default Risk Surges as US Set to End Key Bond Waiver
- CDS pricing puts chance of default at 90% within a year
- Treasury exemption has allowed Russia to make coupon payments
This article is for subscribers only.
Russian default risk surged as investors reacted to the possibility that the Biden administration will fully block bond payments from the country to US investors from next week.
The move may be the final straw in Russia’s debt saga, pushing the country into its first foreign default in a century. Despite sweeping sanctions, it’s so far managed to avoid that, thanks in part to a US US waiver that allowed bond payments to US investors.