"Investment giant Pimco risks up to $2.6 billion if Russia defaults on its debt"
"Pimco is at risk of losing up to $2.6 billion if Russia fails to make its debt payments, after the asset manager bet big against a default, according to a Financial Times report.
The investing giant holds $1.5 billion in Russian Federation-linked government bonds, the report said, and it had sold $1.1 billion in credit default swaps, or CDS, on Russian sovereign debt at the start of 2022.
That means Pimco is vulnerable to lose out on two fronts — the bond holdings and the CDS — if Russia does default on its sovereign debt, which Fitch Ratings has warned is imminent.
At least five Pimco funds sold the CDS to investors wanting insurance against a potential Russian default, the FT reported, with the asset manager betting that Russia would meet its obligations. Pimco did not respond to an Insider request for comment."
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