Investors in Russian bonds relaxed about extended Putin rule

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The prospect of President Vladimir Putin staying in the Kremlin until 2036 does not seem to be deterring buyers of Russia's high-yielding sovereign bonds as investors focus on economic fundamentals and political stability rather the risk of policy stagnation.

MOSCOW/LONDON - The prospect of President Vladimir Putin staying in the Kremlin until 2036 does not seem to be deterring buyers of Russia’s high-yielding sovereign bonds as investors focus on economic fundamentals and political stability rather the risk of policy stagnation.

Now, constitutional changes that could extend the rule of Putin, who has been in power since 2000, as well as Moscow’s plans to funds its post-pandemic recovery program have shone a fresh spotlight on the $135 billion OFZ market. Foreign investors currently hold $43 billion worth of OFZs or around a third of sovereign rouble bonds.

Russia needs its investors on side: Moscow wants to double its OFZ sales to $71 billion to steer through the recession. And bond buyers seem happy enough to comply.

 

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I mean, political stability is never a bad thing, right? Look at what happened after Saddam and Gaddafi were ousted.

What is people expecting ?Investors don’t care about politics , they are only interested in money and as money calls money everything it’s ok. If you look at the past you’ll see that very big fortunes made money when it was illegal to do business with Russia. Relax ,take a deep ?

Its same as elections in uk, but tories put a comic strip theme to whole process.

Sure they are, they don't want to be disappeared .

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