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Bailey McCann, Opalesque New York:

Despite negative returns for many of Russia's hedge funds in recent years, participants at the Opalesque Russia Roundtable note that fixed income investing is starting to pick up. Banks have started to nudge savers toward Eurobonds over CDs as they are more liquid and have a greater yield. For investors looking to make up what they might have lost during Russia's incursions into Ukraine, Eurobonds are picking up steam.

For more risky investments, "investors prefer structured notes, where principal loss is limited to 0-10% (zero coupon bonds, for example) with the cashflow stream invested into call options on assets like U.S. stock indices, gold or some ETF," adds Gregory Klumov, Portfolio Manager, SBD Global.

"Also, you can do arbitrage by buying government-issued Eurobond and sovereign CDS. This spread is around 150 basis points right now. One reason for that is that the local investors underestimate and don’t understand the opportunities available in the derivatives and the global macro space while foreign investors are not hedging their books enough. Another reason is possibly that it is hard to open a true prime brokerage account with big global institution. You would need a very good track record of personnel and shareholders to establish this relationship in order to get access to cheap funding."

Historically, Russian investors have......................

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