Vneshtorgbank
Ever since the mini-banking crisis of May 2004 exposed the fragility of Russia's privately owned banks, fixed-income investors have started distinguishing more and more between them and the state-owned sector.
While private banks have been limited to maturities of five years, state banks can do 10-year and even possibly 30-year deals. They can also borrow about 150 basis points cheaper than the best private banks.
That gives state banks such as Vneshtorgbank (VTB), Sberbank and Gazprom bank a major competitive advantage – they can expand more rapidly in the profitable...
