Bond and equity market open in first quarter
Four Russian Eurbonds worth USD 2.67 billion were issued this quarter. This is larger than the total over the three previous quarters. A few companied issued SPO for the first time since August 2019. In 2018 Russian capital markets suffered from both political and economic risks. The US Federal Reserve tightened monetary policy. The White House started a trade war with China. The Skripal Affair caused a spa with the EU. The US introduced more sanctions last April. Some of the more bellicose US politicians called for sanctions that were even more swingeing. Since New Year the situation has turned to Russia's advantage. The Fed and the ECB have announced a halt in monetary tightening. The US is no longer talking about inflicting ruinous sanctions on Russia. Russia's credit rating has been upgraded by Moody's. Russian capital markets are looking healthier. The Mueller Report gives little ammunition to those in the US who would like to hurt Russia. But if by any chance the US chooses to hit new issuance of sovereign debt then this will cause headaches in Moscow.