NEWSWATCH Wall Street Journal: “Russian Corporate Bonds’ Unlikely Winning Ways. They are the best performing in the emerging markets in 2015, Citigroup says.”

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The Wall Street Journal reports on the performance of Russian corporate bonds.

From adversity comes opportunity. But given the degree of adversity facing Russia at the end of 2014—sanctions over Ukraine, plummeting oil prices, a collapsing currency—it is surprising quite how much of an investment opportunity it has turned out to be this year.

Russian corporate bonds are the best performing in the emerging markets in 2015, Citigroup notes, with a total return year-to-date of 24%. That is despite Russia being downgraded to junk status, a recession and ongoing turbulence in oil and the ruble.

However, the bonds’ performance is not necessarily likely to continue along similar lines.

Russian corporate bonds still offer a decent yield premium. But opportunities like 2015’s are one-time affairs. Russian markets already have come in from the cold: a further windfall is unlikely.

Click here for Wall Street Journal: “Russian Corporate Bonds’ Unlikely Winning Ways. They are the best performing in the emerging markets in 2015, Citigroup says.”

 

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