Moscow Exchange will support VI Cbonds Emerging Markets Bond Conference as a sponsor. Cbonds Emerging Markets Bond Conference is the established annual meeting place for anyone involved in EM bond market. It will take place in London on April 6-7, 2017. Since 2010, the conference has been attended by over 600 unique participants from the UK, Russia, the CIS, and Europe.
Andrey Bobovnikov, Head of Sales, Debt Capital Markets and Structural Instruments, Moscow Exchange, will join the Russian bond market panel on the second day of the conference. He gave the short comments about integration of the Russian debt market into the global infrastructure.
- How do you assess the current level of integration of the Russian debt market into the global infrastructure?
Now Russian debt market technically is highly integrated in international infrastructure. Since 2014 Euroclear and Clearstream offer settlement services for Russian sovereign and corporate bonds. We don’t have restrictions on investing in local bonds as well as currency restrictions.
- How do foreign investors assess quality of Russian infrastructure?
Taking into consideration pretty high share of foreign investors in local government bonds we can make a conclusion that international investors trust our infrastructure.
- What is the current foreign investor interest in the Russian fixed income market like? Is there demand and where are the key risks for investors?
- Now the foreign investors demand for local Russian market is focused on Russian government bonds. More than 20% of OFZs are held via Euroclear/Clearstream accounts in NSD. Almost 25% of OFZ turnover falls on international participants. The foreign investors share in corporate bonds is not that big however we see growth prospective. The most risk for investors is currency rate to our opinion. However OFZ foreign investors seem to manage it well.
- What appealing investment opportunities does this market offer international investors today?
- Nowdays in a world on low interest rates Russian local bond market gives international investors very interesting rates. Of course one should keep in mind need to manage currency risk.
- Are there prospects for foreign issuers tapping the Russian market?
- We see good prospective of local bond placements by international borrowers doing business in Russia and having massive rouble revenues. International automakers’ banks are good examples of such placements.
- What are possibilities for foreign instruments to be listed in Russia?
- Russian legislation and listing rules provide opportunity to list foreign instruments on local market. MOEX has listed more than 60 eurobonds of sovereign and corporate borrowers.
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