Posted on 03/10/2022 7:51:40 AM PST by marcusmaximus
Pimco is at risk of losing up to $2.6 billion if Russia fails to make its debt payments, after the asset manager bet big against a default, according to a Financial Times report.
The investing giant holds $1.5 billion in Russian Federation-linked government bonds, the report said, and it had sold $1.1 billion in credit default swaps, or CDS, on Russian sovereign debt at the start of 2022.
That means Pimco is vulnerable to lose out on two fronts — the bond holdings and the CDS — if Russia does default on its sovereign debt, which Fitch Ratings has warned is imminent.
(Excerpt) Read more at markets.businessinsider.com ...
Wanna bet Dementia Joe finds a way to help KGB Putin miraculously make his sovereign debt payments next week?
“after the asset manager bet big against a default”
Now, if you or I bet big and lost, we sould be hounded by all to “Pay your debts!”.
But, Too Big To Fail only privatize GAINS.
Loses are left to be covered by the Goobermint (The People).
(Like the Nickel short squeeze cover-up/bailout that is happening right now.)
Drop in the bucket.
I don’t think you’re wrong but the tell tale sign of your comment will be answering the question:
How much do Blackrock and Vanguard have invested over there?
More so, Blackrock given that 3 or 4 of its senior folks are now “economic advisors” to CornPop. I’m sure they’re completely impartial. Talk about foxes guarding the hen house.
Credit Default Swaps - now where I have I heard of those before...
It’s deja vu all over again.
Who knew that cutting one branch from the global financial tree would affect the health of other branches?
Do not throw poo at the monkeys.
I expect that as the 3/16 default date gets closer, we’ll find out more about the Russian debt exposure by Black Rock and other Brandon donors.
With Joe paying Russia a billion a day since Trump left, should be no prob.
Blowback from Oligarch geniuses trying to live up to their self-advertisement as Masters of the Universe smarter than everyone else, able to say how everyone should live in every tiny aspects of their lives, just because they are able to capture billion$.
The financial markets are like a gigantic row of dominos.
One domino falling is a nothingburger, of course....
That would be interesting. Count me as one of the group of people on this Earth who would like to see Blackrock go belly-up.
Russia has $40 billion in government debt and half of it is owed to Russians vs US $30 trillion in debt. For all you math wizzes... a trillion is 1000 times more than a billion.
Ping.
True. But that is only because the sharks saw the opportunity to take advantage of Russia, the oligarchs and all that Russia has to offer.
If I read the articles right, ONLY 7% of the oil we import/purchase comes from Russia and from what I saw on CNN the other day(I was forced to watch it), the US barely spends $1billion a year on it, if that.
China takes up the brunt of Russian oil, at $27billion, adding another $1billion isn’t going to hurt them and Russia isn’t losing anything.
This is the housing and mortgage crisis of ‘08, all over again.
When you sell the same bushel of corn five times, 4 people don’t get it.
It isn’t a $2.6 billion default, it is going to contaminate at least ten times more.
Debt to GDP ratios:
Japan, 237.00%
USA, 107.00%
Russia 12.20%
Egypt 9.00%
Cayman Islands 5.70%
https://worldpopulationreview.com/country-rankings/debt-to-gdp-ratio-by-country
US$2.6 billion for an investment firm like PIMCO is a drop in the bucket compared to the over US$2 trillion in investments they ahve.
That is so true. A rounding error...
Tell me if I’m wrong - A credit default swap is basically insurance with no monetary backing.
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