The 12 worst investments of 2014, #11: Russian corporate bonds

Yields on Russian corporate bonds soared this year as billions of dollars’ worth of capital left the country in the wake of sanctions by the EU and US.

141225-gazprom

Decline in2014: -14.78%

See all 12of 2014's worst investments here

What happened?

billions of dollars' worth of capital left

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said Sergio Trigo Paz

The falling value of the rouble played a major part in the decline of corporate bonds, making it far more expensive for Russian corporations to pay back dollar debts. "If you have currency debts, you must be wondering how you are going to pay them off now", said Timothy Ash at Standard Bank.

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