Bad Boy Ruble Turns Star Currency for Fans of Russia Carry Trade
- Citigroup, Commerzbank recommend trade and go overweight OFZs
- Russia local currency bonds offer yields second only to Brazil
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The recovery in Russian asset prices is rekindling interest in what was the world’s top carry trade strategy in the first half, and Citigroup Inc. and Commerzbank AG say there are more gains to come.
Russia was the top destination for carry traders who borrow in dollars to buy higher-yielding debt, earning 8.2 percent in the past month, according to data compiled by Bloomberg. The ruble’s 7.1 percent gain is also the best among emerging-market currencies in the period, after slumping more than twice as much in the third quarter.