Russian bond market losses have cut deep. Still, certain sectors fared better than others. The question now is how trade policy and sanctions may be shifting, and whether there may be greater impact on sectors that have shown relative strength.

Following up on our earlier research on contagion indicators, we looked at how the liquidity of corporate bonds from Eastern European countries (the Czech Republic, Hungary, Poland, Slovakia and the Baltic states) has changed since the start of the Russia-Ukraine war.