Russian Banks Repackage Bad Loans Into Bonds Worth $13.3 Billion by 2026

1 articles · Updated · Українські Національні Новини · May 18

$13.3 billion is the projected size of Russia’s securitized bad-loan market in 2026, after banks bundled non-performing consumer loans into bonds and sold them to investors.
$3.1 billion of such securities were issued in 2025—five times the prior year—as lenders used the structure to clear distressed assets from balance sheets while the central bank’s key rate stayed at record highs.
Sberbank, Alfa-Bank and Gazprombank are active in the market, where yields run 2 to 4 percentage points above corporate bonds and private investors already account for every third buyer.
1.8% monthly default rates hit some 2025 issues, underscoring the risk that weaker household borrowers inside the pools could leave investors exposed despite the repackaging.
10 to 11 technical defaults were recorded across Russia’s debt market in the first quarter of 2026 alone, with up to a quarter of the bond market seen in a high-risk zone.

Why is Russia’s market for bad debt projected to dwarf Europe's entire asset-backed securities market?

Is Russia’s banking system building a debt pyramid, risking a repeat of the 2008 global financial crisis?

As its economy falters, can Russia's risky financial schemes continue to bankroll the war in Ukraine?