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IX CIS and Baltic Region Bond Congress: the crisis persists

14.06.2012

Will the situation change after elections in Greece, or is the volatility staying until the end of the summer - those were the questions participants tried to answer at the IX CIS and Baltic Region Bond Congress, which was held by Cbonds News Agency in Yalta on May 31 - June 3, 2012. This year's Congress brought together about 250 delegates.

"It is actually surprising that in these times of crisis Cbonds manages to gather a huge number of people," said Pavel Sokolov, Deputy Head of Investment and Bank Management, Head of DCM at Troika Dialog. Unfortunately, the weather is foul, the sea is cold, and the market weather is not too good. The crisis continues to unfold. The situation presents new challenges to both issuers and investors. Until 2008, we lived in a very good time: issuers were paying coupons, investors were buying debt, everything was in order. Today, the market is highly volatile, and in some segments it is simply not there."

"Talking of the bond market, we are currently referring mainly of the government debt market. Corporate bonds are now virtually not available", lamented Sergey Lyalin, CEO of Cbonds.ru. “I want to believe, of course, that this is a temporary glitch, and the corporate bond market will recover, but as of today, we have what we have. Even in Russia the situation has recently become tense, primarily on account of the currency market." The highest risk in Russia is associated with how the authorities could react to weakening of the ruble. If they suddenly start to support the national currency, we are in for another 2008", says Anton Struchenevsky, Senior Economist at Troika Dialog.

Host country representatives noted that unlike Russia, which objectively can't complain, and in comparison with Belarus, which (according to the Director of Treasury Operations at Belinvestbank Yulia Kostenevich) survived and even learned to earn in the tough times, Ukraine seems to be on the verge of a major crisis.

"The number of people who came to the Congress demonstrates that, despite the tough economic environment, the number of optimists is not reducing," said Alexander Suliayev, President of IG SPARTA.
During the three days in Yalta, market participants discussed matters of survival in the midst of financial crisis, and took a boat ride along the coast, had dinner in Massandra - the former summer residence of Emperor Alexander III, and tasted wines in the cellars of Massandra plant. As part of a fund-raising in favor of the charity fund for sick children "Be Human" ("But’ Chelovekom"), the guests donated $ 17,850 for treatment, surgery and medication.

Read a detailed report from the scene in the new issue of Cbonds Review (article "Yalta Conference").