Russia Faces Another Default Review in Crunch Bond Week (1)

A panel of dealers and investors will assess whether Russia failed to fully meet its bond obligations -- putting it in default -- because it didn’t include additional interest of $1.9 million in a late payment made earlier this month.

The Credit Derivatives Determinations Committee said Thursday it will review whether a “failure-to-pay” event occurred for credit-default swaps. If it finds it has, that could pave the way for an insurance payout on the debt.

Swaps are currently pricing in an 87% chance of a Russian sovereign default within a year, according to ICE data services.

The possible ruling ...