Economics
How Investors Are Dealing With Threat of Russian Debt Sanctions
- Allianz says so-called nuclear option is still unlikely
- GAM has become ‘less keen’ on debt since latest bill proposal
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Just when Russian debt was starting to look like a safe bet, investors were hit this week with a reminder that the biggest risk of all is still lurking just around the corner.
Lawmakers in the U.S. renewed discussion about the nuclear option of punishing the Kremlin for alleged election meddling by sanctioning Russian sovereign-bond markets. While the bill being introduced by two leading senators is a long way from becoming a law, its proposal was enough to send yields to the highest level in a month.