On the dynamics of trading in corporate bonds

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On the dynamics of trading in corporate bonds.

Corporate bonds are traded on the Moscow Stock Exchange.

The most liquid corporate bonds traded on the Moscow Stock Exchange are listed below:

- RSHB bond issue BO-02-002P (ISIN code - RU000A1068R1) -0.1%;

- Polyus PBO-04 bond (ISIN code - RU000A108L81) +0.1%;

- Rosagroleasing 002P-03 bond (ISIN code - RU000A109DT9) +0.1%;

- Russian Railways bond of JSC ZO26-1-FR (ISIN code - RU000A1084S6) -0.8%.

All corporate bonds have a rating. It allows the investor to quickly assess the credit quality of the issuer.

Russia uses a national rating scale. The highest rating &AAA», the lowest –&C», as well as the step «D», which means the actual default. Accordingly, the higher the rating, the more reliable the issuer is and, as a rule, the lower the yield of its bonds.

Bonds &AAA» are the most reliable. These are large system-forming companies, usually with state participation.

Bonds from «A-» to «AA+» - reliable securities. Pension funds and other institutional investors invest in them.

Bonds from &BBB-+» to «BBB+» - transitional category. These may be reliable companies that are sensitive to adverse events in the market and in the economy (for example, an increase in the key rate).

Bonds from «B-+» to «BB+» - high-yield issuers (VDO). The risks are high, as are the returns. This may be a small, medium-sized business that operates in a risky area.

Bonds &CCC», «D» are on the verge of default. For such securities, the risks are maximum.