What term describes the 1998 collapse of the Russian ruble and government bond market?

The 1998 collapse of the Russian ruble and government bond market is called the 1998 Russian financial crisis.

Russia devalued the ruble and defaulted on domestic debt in August 1998. The crisis followed years of fiscal weakness, low tax collection, political instability, and falling commodity prices, especially oil. Investors had also become more cautious after the 1997 Asian financial crisis, making it harder for Russia to refinance its obligations.

The shock spread beyond Russia. Long-Term Capital Management, a highly leveraged U.S. hedge fund, suffered major losses partly because its models had not anticipated such extreme market conditions. The Federal Reserve helped coordinate a private-sector rescue of LTCM, but it did not directly bail out Russia. A common mix-up is treating the Russian crisis and the LTCM crisis as identical; they were linked by market stress but were separate events.