Americans buy Russian bonds against the backdrop of an unprecedented rollback in their value

Investors are looking to make money as hedge funds that specialize in buying cheap loans intend to increase the volume of assets, reports Bloomberg.

Buying distressed securities on Wall Street is a common thing. However, now such actions are associated with considerable risks against the backdrop of sanctions against the Russian Federation by Western countries, the newspaper notes. The purpose of Western sanctions is to cut Russia off from the global financial system. Any attempt to prevent this carries great risks for the reputation of those companies that join this, the experts of the publication note.

The companies did not comment on their actions on the stock exchange, however, sources of the publication confirmed that they are interested in acquiring corporate debts of Evraz Plc, Gazprom and Russian Railways with a maturity in the next two years, as well as Russian government bonds. Experts emphasize that now these papers are greatly underestimated, or priced incorrectly. Their owners are trying to get rid of them at any cost, fearing a default of the Russian economy.

So, for example, Russian government bonds maturing in 2026 collapsed five times in price in a week. Now they are trading at 20 cents per dollar of their face value. Prices for corporate bonds have collapsed by 70% since the start of the military special operation in the Donbass and subsequent sanctions by Western countries.