FT News Briefing Bargain hunting for bonds in Russia and Ukraine
Mar 25, 2022
Katie Martin, Markets Editor at the Financial Times, offers sharp insights into the reopening of Russia's stock market and the hunt for bargains among Russian and Ukrainian bonds. She discusses the Russian shares' fleeting rise and the ethical dilemmas facing investors amid the war. The conversation also dives into how US Treasury markets are grappling with rising interest rates and inflation. Additionally, Martin touches on Toshiba's leadership challenges and the implications for its future.
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Russia's Stock Market Reopening
- Russia reopened its stock market after a three-week suspension, but with heavy restrictions.
- Foreign investors cannot yet sell their shares, and short-selling is prohibited.
Ethical Dilemma for Investors
- There's a debate about whether investors selling Russian shares frees them up for oligarchs to buy cheaply.
- Many investors are hesitant to reinvest in Russian markets soon.
Bargain Hunting for Bonds
- Some hedge funds are buying deeply discounted Russian and Ukrainian corporate bonds.
- They hope to profit in the long term if the debt is eventually repaid, potentially involving legal action.