Market History: Russian Ruble Crisis

With emerging market credit spreads widening and signs of a desire for 'safe' assets showing up everywhere, I thought it'd be worth looking back at the Ruble crisis.

After Russia defaulted, unsurprisingly the market dropped.  Interestingly safe assets like Utilities ran higher.  The run lasted 2 months or so while the market hammered out it's bottom.  As we approached the default event, the utilities advance quickly became highly correlated with the drop in long term treasury rates.  Treasury yields had already been falling and their drop accelerated immediately after the default

For more reading on the crisis check this out

Trade 'em well