FirstFT: Trades fail on US corporate bonds as banks avoid Russia ties

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The number of failed trades in the US corporate bond market rose after Russia invaded Ukraine, as investors linked settlement problems to sanctions imposed after the war began.

Nearly $70 billion in deals failed in the week ending April 6, and over the past six weeks failed deals have averaged just over $86 billion, according to updated data. day Thursday by the Federal Reserve Bank of New York.

The value of failed deals was well above the long-term average of $40 billion per week, which largely persisted in January. In the week ending March 23, nearly $150 billion in deals failed, the most since 2007.

A complex chain of custody connects the US corporate bond market, where about $30 billion worth of securities change hands daily. Once a bond is traded, investors pass it on to their prime broker, who settles the transaction, confirming a change in ownership.

But differences between bank trading desks, prime brokers and other financial intermediaries over how to implement a myriad of sanctions against Russia have upended this usually smooth process.

Thank you for reading FirstFT Europe/Africa. Here’s the rest of the news from the day — Gary

The latest news from the war in Ukraine

  • News: Russia’s flagship in the Black Sea, the Moskva, has sunk, the country’s Defense Ministry has confirmed. Ukraine claimed responsibility.

  • Punishments: The UK will freeze around £10bn of assets held by two longtime associates of oligarch Roman Abramovich. The United States has a “long playbook” of planned new sanctions against Russia, a senior State Department official said.

  • Wall Street: U.S. banks this week detailed billions of dollars in potential war losses while warning they saw no end in sight for the market turmoil.

  • Heritage: Ukraine is fighting to protect its churches, historic sites and national monuments from the ravages of war.

  • Opinion: Western voters face a choice: Peace in Ukraine or keep the air conditioning on as war drives up energy prices, writes Gillian Tett.

1. Le Pen exploits cost-of-living fears as second round approaches in France Ahead of the presidential run-off on April 24, far-right candidate Marine Le Pen is seeking to make the most of what French voters are telling pollsters as their biggest priority: the soaring cost of living .

2. UK lonely holiday home bookings hit by soaring fuel prices Bookings of UK holiday parks and cottages in remote locations have been hit by holidaymakers’ worries about rising fuel prices, even as operators reported a last-minute increase in weekend bookings. end of Easter.

3. A member of the “Beatles” of Isis sentenced A US jury has found El Shafee Elsheikh, a former British citizen and Islamic State fighter, guilty on all counts, including taking hostages resulting in death and conspiracy to murder US citizens outside the country. He faces a mandatory life sentence.

4. Elon Musk offers to buy Twitter for a $43 billion valuation The Tesla boss made a hostile bid on Twitter with an offer that values ​​the company at $43.4 billion, although he acknowledged his bet to privatize the social media platform could backfire.

5. Pakistani army rejects Imran Khan’s US conspiracy charge Pakistan’s military establishment has dismissed ousted Prime Minister Imran Khan’s claims that he was the victim of a US-led plot and called his visit to Moscow on the day Russia invaded Ukraine a ” embarrassing”.

The coming days

Easter and Passover Markets around the world, from Singapore to the UK and the US, will be closed today in honor of Good Friday. Passover also begins at sunset. On Sunday at the Vatican, Pope Francis will lead Easter Mass in St. Peter’s Square.

Economic data : France, Italy and Poland are today releasing consumer price index figures for March.

The Invictus Games The competition for wounded servicemen starts tomorrow in The Hague.

Join us for the FT’s Crypto and Digital Assets Summit on April 26-27. register today be part of a critical conversation with the global finance and business elite, as they chart the way forward to bridge traditional finance with the crypto leaders of tomorrow.

What else we read

“Planting trees in Scotland will not solve climate change” Companies and investors looking for a simple solution to climate commitments should plant fewer trees in the northern hemisphere and focus on restoring rainforests, writes John Gapper.

The Unlikely Russian Media Revolutionary Once a socialite, Natalia Sindeyeva founded TV Rain, a lifestyle channel that has evolved into Russia’s only independent news channel and one of the country’s last bastions of free speech and dissent. Now in exile, she is planning her next move.

Rising costs threaten age-old craftsmanship It takes a lot of energy to turn sand into glass, barley into beer, clay into tiles and pots, wood into wheels and metal into casting. With rising bills and runaway inflation, the UK’s 150,000 craftspeople are feeling the pinch.

Panasonic is betting on a bigger battery to wean itself off Tesla Chief Executive Yuki Kusumi said the Japanese electronics conglomerate expected the rollout of its next-generation electric vehicle battery to help the company diversify its business as it refocuses after a period of restructuring. agressive.

Britain’s migrant deal with Rwanda is a boon for Kagame The London-Kigali deal is part of a campaign to restore the international reputation of Paul Kagame, the Rwandan president whose treatment of his critics at home and abroad has drawn widespread criticism, writes Michela Wrong.

Books

The great renaissance of book buying during the pandemic has highlighted the resilience of the classic reading format. Three new works on books explain why bound pages remain so popular.

The spectacular interior of Zhongshuge Bookstore in Dujiangyan, China

The spectacular interior of Zhongshuge Bookstore in Dujiangyan, China © Zhang Lang/China News Service/Getty Images

To work — Find out what’s changing the world of work with Isabel Berwick, Editor-in-Chief of Jobs and Careers. Register here

troubled times — Your essential FT newsletter on the changes in business and the economy between Covid and conflict. Register here

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