Russian bonds have become extremely popular in Europe and the United States, says a senior columnist for Forbes Kenneth Raposa: the reason is that the profitability of Russian securities are much higher than European and American. Advantages of Russian finances lies in the low level of public debt, large reserves and a stable exchange rate of the national currency, said Raposa.
ReutersПростите, haters, but the Russian securities market the best Chinese and American, and to blame Europe, writes senior columnist for Forbes Kenneth Raposa.
Amid all the talk about how to drain the Russian Finance through the imposition of sanctions against major state companies, Russian bonds have become extremely popular not only in Europe, where securities income almost reaches zero, but in the United States, said Raposa. Yields on Russian dollar bonds reaches of 4.25%: for comparison, German bonds are losing increased mobility in soil -0,35% and the yields on U.S. ten-year bonds is only 1.8%. In addition, Germany and the United States a significant amount of debt, which may deter investors, while Russia has almost no national debt. “They have become immune. They can repay all its foreign debt at the expense of reserves of the Central Bank. In addition, they reduce interest rates. Their currency is very stable. Also they have tax revenues that can be spent on the economy,” — said the head of the Department for debt of the developing countries of the Investment company Schroders James Barrino. Raposa writes that Russian foreign currency reserves of $433 billion: in addition, Russia has gold reserves amounting to $107,9 billion Thus, Russia comes second after China with reserves among the developing countries. A number of Russian companies paid large dividends on their stock, making attractive the Russian securities market. Among the companies with the largest dividends Raposa allocates Magnit, X5 Retail Group, LUKOIL, MTS and VanEck Russia. As noted Raposa, since the collapse of the USSR, Russia were three of the financial crisis, the country also faces problems because of the demographics, the declining prices of oil and gas and US sanctions. Nevertheless, Russia is accustomed to difficulties. After the crisis in the real estate industry in 2008, many Russian investors again turned to the securities market. Since 2007 the number of registered on the Moscow exchange customers increased by 120%. Improved legislation for the protection of investors, has created a system of Deposit insurance. In addition, strict rules for banks allowed to clean up the banking sector. Another positive factor — it is expected that next year Russia’s GDP will grow by almost 2%.