Corporate bonds are trading mixed on Friday.

© ООО Региональные новости

The most liquid corporate bonds traded in the last trading day of the week showed mixed performance:

- RSXB Bond Series BO-02-002R (ISIN code - RU000A1068R1) +0.1%;

- Polyus Bond Series PBO-04 (ISIN code - RU000A108L81) -0.8%;

- Borets Capital Bond Series 1R-01 (ISIN code - RU000A105ZX2) -0.1%;

- AFK Sistema Bond Series 14 (ISIN code - RU000A101XN7) -0.7%.

National ratings scale is used for issuers. The higher the rating, the more reliable the issuer and, as a rule, the lower the yield on its bonds. The highest rating is "AAA", the lowest is "C", and there is also a "D" level, which means actual default.

"AAA" bonds are the most reliable. These are large systemically important companies, usually with state participation.

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

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

Bonds from "B-" to "BB+" are high-yield issuers (HYE). Risks are high, as is the yield. This can be small and medium-sized businesses operating in a risky sector.

Bonds "CCC" and "D" are on the brink of default. The risks for such securities are maximum.

Overview provided by Yulia Grishchenko, member of the Expert Council of the Moscow Exchange on Listing, PhD in Economics, Head of the Department of Financial and Investment Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.