Russia Crisis Hits Pimco Fund, Wipes Out Options
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After the single worst day in Russia’s nine-month-old financial crisis, the fallout is spreading across global markets.
Pacific Investment Management Co. is facing mounting losses on its Russian bond holdings; almost every bullish ruble option contract registered in the U.S. has been made worthless; and foreign-exchange brokers in New York and London told clients they’re no longer taking ruble trades. Sergey Shvetsov, a first deputy central bank governor, expressed astonishment at the scope of the collapse during a conference in Moscow.