US Sanctions Create Wealth Transfer on Russian Bonds

The US Government’s sanctions on the Russian government and corporate bonds have created a massive wealth transfer from bondholders to issuers. This is an extraordinary and historically unapparelled windfall for the issuers, who can repurchase their debt in the market at a fraction of the face value.

In newly issued regulations, the US Government prohibits Americans from receiving interest and principal payments due on their holdings of Russian bonds. The sanctions have blocked international clearing houses from transferring funds received from Russia to Americans.

Is this the right tactical framework to impact Russia? What was the actual outcome of these sanctions for both Russia and the US?

This HVA provides all the Excel backup information.