Political unrest can have a strong effect on the financial outlook of a region, and the current conflict between Russia and Ukraine is no exception. In light of this precarious, unpredictable situation, and the potentially large impact the ongoing uncertainty may cause for both local and global finances, Ipreo decided to take a closer look.
Ipreo’s Perception Analytics team interviewed a collection of global investors and sell-side analysts to gauge exactly what these recent events might mean for the investment outlook of Russia, how IROs should incorporate the conflict into their communications with the market, and what needs to happen for local investors to regain confidence. How have views towards Russian issuers, and the country as a whole, changed as a result of the conflict?
Not shockingly, the overall view of the Russian investment market currently skews towards the negative. While the scope of the impact cannot yet be known, most investors expect negative repercussions, and are preparing for its effect on everything from capital inflows and borrowing rates, to overall macroeconomic growth. However, where some investors see risk, others see opportunity, as valuations have dropped and created attractive entry points and potential upside opportunity.
The latest Investment Community Sentiment Snapshot lays out exactly what IROs need to know about investment community perspectives toward the region and what can make their communication efforts most effective and impactful as the regional tension persists.