Russia’s August 1998 default triggered a global flight to quality in financial markets.

Evidence

On August 17, 1998, Russia defaulted on its ruble-denominated bonds and devalued the ruble. This triggered a “flight to quality” in the financial markets -a sudden greatly increased preference for financial assets that were safer (less prone to default) and more liquid (more readily bought and sold). — Donald MacKenzie, An Engine, Not a Camera, 1013

Categorization

• XREF: Links LTCM’s crisis narrative to the broader financialization literature and performativity debates about convergence trading. — connects to: Russia’s exceptional default on its own-currency debt triggered the 1998 crisis — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1035; The ruble devaluation and bank moratorium turned Russia’s default into a cascading loss event — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1038; LTCM lost 550 million dollars in a single August day in 1998 — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1052

Broader Connections

• Russia’s exceptional default on its own-currency debt triggered the 1998 crisis #expands (0.90) — Donald MacKenzie, An Engine, Not a Camera, 1035
• LTCM lost 550 million dollars in a single August day in 1998 #exemplifies (0.90) — Donald MacKenzie, An Engine, Not a Camera, 1052
• The ruble devaluation and bank moratorium turned Russia’s default into a cascading loss event #expands (0.85) — Donald MacKenzie, An Engine, Not a Camera, 1038