IAC Project Research Group Discusses A Sovereign Risk Mitigation Mechanism
#МАСотрудничество
On May 13, 2026, the Faculty of World Economy and International Affairs hosted a seminar of the International Academic Cooperation Project working group “Approaches to an Alternative International Monetary System” on the topic “Sovereign Risk Mitigation Mechanism in Emerging Markets”.
During a seminar, A.A. Ponomarenko, a Leading Researcher at CCMI, presented the results of a study conducted jointly with E.S. Bakhmeteva, a Research Intern at CCMI. The study proposes a new financial instrument – bonds backed by government securities of key developing countries (BRICS member states and the association’s partners). The issued bonds are divided into two tranches: senior and junior. The tranching makes it possible to obtain assets with different characteristics: junior bonds are riskier and offer higher returns than senior bonds, as they are the first to absorb losses from sovereign securities defaults; senior bonds have low risk and low returns because they are protected by a buffer consisting of the junior bonds. The study also performed a numerical simulation, which showed that the senior bonds possess the properties of a safe asset, while the junior bonds are comparable in risk and return to bonds of countries with a credit rating of B- or BB-.