Banks split ruble forwards books on Russia sanctions fears
Market flocks to NDFs over fears that sanctions will restrict the ability to settle Russian ruble forwards
Fears that sanctions on Russia could prevent settlement of ruble-denominated trades have revealed hidden risks in bank portfolios, where deliverable and non-deliverable forwards (NDFs) have often been traded as a single book. With end-users switching en masse to NDFs in recent weeks, the prices of the two have diverged, forcing banks to separate them.
"It has been a complete dislocation. In this last week, we've had to split out all the portfolios into deliverable and non-deliverable trades, as
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