Dollars or rubles? Russian debt payments are due and uncertain.
Investors have already taken the financial hit, he added. Russian bonds are trading at an average of around 20 cents on the dollar as traders priced in a default. There were also forced sales of bonds after assets were pushed off the indices, pushing prices down further.
Some of the institutional investors with larger stakes include BlackRock, PIMCO, Capital Group and Vanguard, according to data compiled from Bloomberg. Vanguard, a major provider of mutual funds and exchange-traded funds, recently said it had suspended purchases of Russian securities in its actively managed funds and was working to exit positions in its index funds. PIMCO, the large bond-focused asset manager that had built up significant exposure to Russian debt, declined to comment on its holdings. Carmignac, a French asset manager, said last week it was divesting its Russian holdings.
Officials tried to assess the impact that the war and the sanctions imposed on Russia could have on the global financial system. In late February, members of the Financial Stability Supervisory Board, which is part of the Treasury Department, were briefed on developments in international markets related to Ukraine and noted that the US financial system continued to function ordered.
Andrea Enria, chair of the European Central Bank’s supervisory board, said on Tuesday that eurozone banks’ direct exposure to Russian assets appeared contained and manageable. For example, Russian and Ukrainian debt securities accounted for around 0.5% of euro area investment fund debt securities.
“So far, we haven’t seen anything particularly disruptive,” even in indirect exposure to Russia, he added. Still, there are risks stemming from a Russian debt default and broader financial market volatility, particularly in markets related to oil, gas and other commodities, he said. -he declares.
“Overall, Russia is not systemically risky, but there are people who hold large chunks of Russian debt and they have to figure out what to do,” said Paul Cadario, a former World Bank official who , in the 1990s, oversaw the bank’s budget. for Central and Eastern Europe and the former Soviet Union.