Russia's Economic Outlook: Renaissance Capital MD Sees Opportunities in Fixed-Income Assets
Renaissance Capital's managing director, Dmitry Alexandrov, has shared insights into the current economic landscape and investment opportunities in Russia. At a recent press breakfast titled 'Winter Is Coming', he discussed the risks of a slowdown and growth drivers for Russia's economy in 2026.
Alexandrov started by noting that interest rates remain high, and the economic slowdown is unlikely to support strong financial performance for most companies. He believes that fixed-income ruble assets are currently the market's best bet, offering diverse instruments for varying risk and return profiles.
He highlighted certain banks' subordinated bonds and 'select oversold corporate stories' as appealing investment opportunities. Alexandrov also predicted a higher number of defaults in this economic cycle, stressing the need for deep expertise in portfolio diversification.
Turning to the attractiveness of mortgage-backed securities, Alexandrov pointed out that they can be particularly appealing in times of economic uncertainty due to their stability and security. They offer a fixed return, which can be attractive in times of low yields elsewhere, and they provide diversification and a stable income source in challenging economic conditions.
Dmitry Alexandrov's insights suggest a cautious approach to investments in the current economic climate. While he sees potential in certain fixed-income ruble assets and mortgage-backed securities, he also warns of increased defaults. Investors should consider these factors and seek expert advice for portfolio diversification.
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