Pimco risks losing billions if Russian debt defaults - reports

Default ‘imminent’

clock • 1 min read

Pimco is at risk of losing billions in investment following Vladimir Putin’s invasion of Ukraine, FT has reported.

The US fund manager amassed a bet that Russia will not default worth at least $1bn in the derivatives market, while also holding $1.5bn of the country's sovereign debt. The $2.2trn investment firm began this year - when Russian troops were already gathering along Ukraine's border - exposed to $1.1bn of credit default swaps on Russian debt. The derivative contracts are meant to compensate holders in case the underlying bond issuer fails to make repayments. MSCI ESG Research downgrades Russia to lowest rating Analysis by the FT found that at least five Pimco funds sold the CDS to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

US GSS bond issuances falls to lowest level since 2017

US GSS bond issuances falls to lowest level since 2017

Down 25% amid political turmoil

clock 13 May 2025 • 3 min read
Deep Dive: Private markets could be the future of 60/40 portfolios

Deep Dive: Private markets could be the future of 60/40 portfolios

Split between traditional and revamped model

Cristian Angeloni
clock 25 April 2025 • 5 min read
Pictet AM's Ermira Marika: Do not fear defaults in European credit

Pictet AM's Ermira Marika: Do not fear defaults in European credit

Risk misperceptions

Ermira Marika
clock 22 April 2025 • 4 min read
Trustpilot
Loading page