Alexey Konochkin, Deputy Global Head of DCM at VTB Capital, spoke at the “Crisis of corporate debt” conference organized by Vedomosti newspaper on 19 February in Moscow. During the event, representatives of leading international and Russian financial, investment, and consulting companies shared their forecasts for the sector. They also discussed measures which will help to improve the situation with distressed debt.
In his presentation titled “The corporate bond market and the possibility of defaults,” Alexey Konochkin noted that in 2014, the volume of the corporate ruble bond market amounted to more than 6 billion rubles, while the corporate Eurobond market amounted to 165.9 billion USD. The majority of these bonds were issued by banks and financial organizations. He also listed factors which positively influence the local debt market in the current situation. These include lowering the Central Bank interest rate to 15%; positive changes in the geopolitical situation; improvements in the commodities market condition and the strengthening of the national currency. If these positive trends continue into 2015, there is the potential for a growth of activity in the local debt market.
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