Investors are exploring ways to make sanctions-proof bets on Russian bonds and the rouble in anticipation of potential easing of sanctions by the US under President Trump’s administration. Some are considering trading Russian assets that have been shunned by the west in hopes of a rally if sanctions are relaxed as part of a ceasefire deal in Ukraine. However, trading roubles directly is challenging due to sanctions and capital controls, leading to low trading volumes. Some are using non-deliverable forwards to trade the rouble without direct exposure to Russian assets. The trade is based on the belief that capital flows to Russia may improve, but risks remain, such as a tightening of sanctions or reluctance of Russian investors to return. Foreign holdings of Russian bonds have dwindled, limiting direct exposure to the market for western investors. the text you provide.
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