Before it invaded Ukraine earlier this year, Russia was considered one of the most credit-worthy countries in
Question:
Before it invaded Ukraine earlier this year, Russia was considered one of the most credit-worthy countries in the world, given its low debt levels and substantial oil/gas exports. In June of this year, Russia defaulted on part of their foreign currency-denominated debt obligations.
Take a look at the MOEX (Moscow Exchange - https://www.cnbc.com/quotes/.IMOEX). This index tracks the performance of the 50 largest and most liquid Russian companies from 10 main economy sectors, listed on The Moscow Stock Exchange. How does the movement on this exchange compare to the Russian Bond Market over the last 5 years (10Y Russian Government Bond (https://tradingeconomics.com/russia/government-bond-yield)?
Do you think there are more or fewer information asymmetries in the Russian Bond market versus the Russian Stock Market? Explain.
What could be done to solve these information asymmetries? Who is currently trying to do so?
Expert Answer:
Looking at the MOEX and the Russian bond market over the last five years we can see that the two mar... View the full answer
