Mortgage bonds take a hit in Russia too

Moscow

COUNT the mortgage-backed securities (MBS) market as another victim of Russia's recession.

VTB Group, the nation's top organiser of the bonds, says issuance will slump 60 per cent this year to 100 billion rubles (S$2.1 billion) after the government wound down programmes for state-run agencies to buy the notes. President Vladimir Putin - who has touted the importance of affordable housing and sought to curb mortgage rates that can surpass 16 per cent - has instead been depleting a second source of funding for the securities as he focuses on narrowing the fiscal deficit.