A relic from Russia’s debt default a decade ago is threatening the country’s economic resurgence by forcing more than 200 companies to increase the interest they pay to as much as 16 percent.
With bond yields rising worldwide as the U.S. subprime turmoil spreads, hedge funds and other investors in Russia are demanding the higher rates or their money back.
"There will be some wake-up calls," said Ian McCall, a director at Argo Capital Management in London, which oversees about $1 billion of emerging-market debt.
