Headlines via Reuters, comments from a US Treasury official:
- says Russian sovereign bond default would make it difficult for Russia to find future lenders, increasing Moscow's borrowing costs and draining resources
- sees limited direct exposure in the u.s. financial system to Russian sovereign bonds
- falling Russian bond prices suggest investors see a high probability of default and are preparing for alternative payment outcomes
- primary impact of a Russian sovereign bond default would be on Russian economy
It very much appears that a Russian sovereign default is a matter of when not if. I doubt this comes as news to anyone.
