There is a known $41 billion in Credit Default Swaps (CDS) on Russian debt

Wall Street on Parade ^ | 7 Mar 2022 | Pam Martens

[Boogieman]

“Now why would they do that?”

Investors tend to shy away from investing in countries that won’t own up to their fiscal obligations.

[PeterPrinciple]

“Now why would they do that?”

Investors tend to shy away from investing in countries that won’t own up to their fiscal obligations.

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Russia turned the debt into an asset and cash. They negotiated with it.

For example: “if you will advance us some cash on the loan, we will continue to service it. You can continue to show it on your books as an asset instead a loss and wiping out your business or international monetary fund.

[PeterPrinciple]

Investors tend to shy away from investing in countries that won’t own up to their fiscal obligations.

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You don’t understand how it works. Countries and business become solvent overnight and bankers and business are eager to do business with them again.

I understand your thinking and I think the same. But that is not what happens.

[dennisw]

Senile Joe versus Vlad The Self Impaler (Though Vlad has been rendered long Covid-senile too)

[fhayek]

True that.