DISTRESS WATCH: Thawing US-Russia Relations Lift Debt Prices

The prospect of warmer ties between Vladimir Putin and the US under the presidency of Donald Trump is raising the likelihood of Russia being readmitted to the fold of the global financial system. That’s triggering a rally that allowed billions of dollars worth of domestic corporate bonds emerging from distress in recent weeks.

According to data compiled by Bloomberg, the total amount of Russian corporate debt trading below 80 cents and at a discount of more than 1,000 basis points against the equivalent sovereign bonds has dropped 13% since the beginning of the year to $35.3 billion. That’s among the ...