According to bank documents obtained by Reuters, many big Wall Street banks have begun offering to arrange deals in Russian debt in recent days, giving investors another opportunity to dispose of assets largely regarded as toxic in the West.
According to an investor who holds Russian assets and two banking sources, most US and European banks exited the market in June after the Treasury Department prohibited US investors from purchasing any Russian security as part of economic penalties imposed on Moscow for invading Ukraine.
According to emails, client notes, and other communications from six banks, as well as interviews with the sources, the largest Wall Street firms have cautiously returned to the market for Russian government and corporate bonds following subsequent Treasury guidelines in July that allowed US holders to wind down their positions.
According to the documents, the banks in the market today include JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc, Deutsche Bank AG, Barclays Plc, and Jefferies Financial Group Inc.
For the first time, the return of the largest Wall Street firms, the contents of the deals they are willing to arrange, and the safeguards they are taking to avoid punishment are reported here.
Banks such as Bank of America, Barclays, Citigroup, and JPMorgan declined to comment.
According to a Jefferies spokeswoman, the firm is ‘working within worldwide sanctions guidelines to help our clients through this challenging scenario.’
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