For investors seeking higher-yielding investments, Russia has become a prime destination. The central bank’s key interest rate is 14%, compared with rates at or near zero in the U.S., eurozone and Japan.
“Russia is the high-yield story,’’ said Geoffrey Pazzanese, senior portfolio manager at Federated Investors, which has $362.9 billion in assets under management. “The ruble was oversold, and there has been a big change in terms of conditions from last year.”