Everything Moscow! But forced selling of Rusal bonds hits blockade

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By Francesca Young
12 Apr 2018

Rusal bondholders are in a pickle. They have been told by the US Treasury that they have 60 days to dump the sanctioned Russian company’s bonds, but trading has halted, leaving them stuck with the debt. Investors are lost as to how to value the bonds in their portfolios and are scrambling to work out how they can legally continue to hold and mark them.

“The problem the Rusal bondholders now have is that they can’t legally hold the paper but they also physically can’t sell it,” said one fund manager in London. “There’s no pricing on Bloomberg anymore and the exchanges have stopped trading it.”

He said his understanding was that “it would ...

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