Russia May Be Toxic, But Domestic Investors Don't Mind

Russia's bond offering was still oversubscribed even though Western banks and clearing organizations stayed away.

Sole underwriter.

Photographer: Alexander Zemlianichenko Jr/Bloomberg

Can a major sovereign borrower issue eurobonds without the help of major Western banks and clearing systems? Russia has just proved this possible, but it’s likely that Russian investors will end up buying most of the country’s first bond issue since it was hit with Western sanctions.

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