#ForexChief #WallStreet #forexnews #Evraz #Gazprom #RussianRailwaysBonds #stock #worldnews #forexmarket #JPMorgan⠀
🇨🇳🇷🇺 Wall Street and China are buying up Russian debt: no politics, just business⠀
📉 For the past two weeks, banks, hedge funds and private investors have been actively interested in the corporate «debts» of Russian companies.
Evraz, Gazprom and Russian Railways bonds maturing in the next two years are in particular demand. The US ban on Russian energy supplies caused a fresh wave of purchases from the Chinese capital.
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Buying «politically troubled» assets is a standard practice on Wall Street: investment bank traders are always looking for undervalued assets, and such a search has nothing to do with the political assessment of any country or individual company. For example, Goldman Sachs and JPMorgan Chase have been buying all Russian corporate bonds for the past few days, Goldman Sachs is also trading default swaps on
Evraz and Gazprom. And although at the same time reputational risks increase for buyers, large speculators are not ready to lose such a chance for profit.
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Shortly, Russian securities may be closed for transactions altogether. Bonds may be removed from the indices and there is a growing risk that these companies may miss coupon payments on the bonds. Europe has already blocked Russian-linked funds, whose total assets exceed €4 billion, which is why investors simply cannot get out of deals.
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At the same time, Beijing is in talks with China National Petroleum, China Petrochemical Corporation, China Aluminum Corporation of China and China Minmetals Corporation about possible investments in Russian companies or assets. Moreover, such potential deals are seen as support for imports, energy and food security of China, and not as a demonstration of loyalty to Russia - the usual tricks of Asian politics.
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At the moment, any futures transactions in commodity assets are especially dangerous. We analyze all the information related to the oil and raw materials industry comprehensively and are not in a hurry to enter the market.
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Profits to y’all!