Salient to Investors:

  • Richard Segal at Jefferies Intl said Russia’s reserves are too large relative to emerging-market dollar bonds so it will be difficult for it to stop buying US, European and Japanese bonds.
  • Luis Costa at Citigroup said Russia’s bond-diversification plan sounds like posturing as the size of its sovereign-wealth funds is a massive issue.
  • Ogeday Topcular at Ram Capital said sovereign wealth funds should be diversified as much as they could be to minimize the market and event risks. Topcular said Russia could invest in BRICS bonds but the motive should not only be to flee the countries who imposed sanctions.
  • Economists predict Russia will grow 0.3% in 2014 versus declining 7.8% in 2009. .
  • Oleg Kouzmin at Renaissance Capital does not see Russia’s investments in developed nations’ Eurobonds being replaced or significantly reduced by any other instruments in the foreseeable future.

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