Russian Default Risk Jumps

[RedEarth]

After yesterdays 13% drop the Russian stock market remains closed today.

But, the rest of the world keeps trading… and the speculative attack on Russia continues.

It wasn’t too long ago that a confident Russian Bear flush with easy commodity bling threw caution to the wind and strutted into Georgia to establish dominance in the region.

To say Russia has quickly been humbled would be an understatement. After a brief period of complete shock, expect a sudden outburst of absolute rage from the Russian people and Russian politicians as they squarely lay the blame for their instant fall from grace on ‘the West’. Unfortunately Russia's regional neighours are likely to bear the brunt of that blind rage.

The future will not be pretty.

Russia Debt Risk Jumps After `Clumsy' Ruble Widening, Rate Rise: “The cost of protecting against a default by Russia soared after the central bank increased the ruble's trading band and lifted its benchmark interest rate to stem record capital outflows.

Credit-default swaps on Russian government bonds jumped to 7.87 percent of the amount insured from 6.14 percent yesterday, according to CMA Datavision prices. The yield on its 30-year dollar bonds increased to 10.77 percent from 9.1 percent, according to Bloomberg prices.

http://benbittrolff.blogspot.com/2008/11/russian-default-risk-jumps.html