Russian Funds Play Vultures With Croatia's Distressed Debt

  • Agrokor bonds trade at record low as company nears bankruptcy
  • Moscow-based UFG Wealth Management bets price will double

A view of Bana Jelacica Square and Zagreb Cathedral in Zagreb, Croatia.

Photographer: Simon Dawson/Bloomberg
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Russian investors are taking the global hunt for yield to the extreme.

Priced out of their own bond market by investors fleeing sub-zero yields in Europe, local banks and wealthy Russians are seeking out higher returns from the distressed bonds of Agrokor d.d., Croatia’s biggest company.