Russian rouble collapse leaves bond market on edge

The beating that Russia’s markets took this week wasn’t on the same scale as the 1998 crisis but it was nevertheless shocking even for veterans of the earlier collapse, who were left slack-jawed at the free-fall of the rouble on Tuesday, writes Francesca Young. Even after the authorities got their act together and produced a package of stabilising measures and interventions on Wednesday, investors are now acutely aware of the heightened risk of defaults next year as weakness cascades through the economy.