Morgan Stanley Sees Russia Set for Venezuela-Style Debt Default

Five-year credit-default swaps have soared to over 2,500 basis points as investors price in a greater probability of missed payments as the war escalates. Meantime, Russia’s sovereign debt has handed investors average losses of 81% since the start of the year, according to a data compiled by a Bloomberg index. Only government dollar debt from Belarus has performed worse in 2022, with losses of 93%, the data show.