Economy 52,861 Posted June 26, 2022 Share Posted June 26, 2022 https://www.bloomberg.com/news/articles/2022-06-26/russia-is-hours-away-from-its-first-foreign-default-in-a-century Russia is expected to default on some debt payments on todays deadline as there are no signs that the investors owed the money have received their bond payments Although Russia has cash on hand sanctions on payment systems make transactural workarounds difficult A default is a big deal because when a Nation or Company defaults on a debt payment their credit worthiness is tarnished for years and investors have less trust and willingness to lend to the party in question. Low credit rating bonds are also refered to as "junk bonds" which are considered to have a higher risk of default and require higher interest rates in order to attract and convince investors to take the risk It has been decades since the last time Russia defaulted on a payment Link to post Share on other sites More sharing options...
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