Corporate Bond Trading Shows Mixed Activity, Prices Fluctuate Amid Market Uncertainty

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Below is a list of the most liquid corporate bonds traded on the Moscow Exchange:

- Russian Agricultural Bank bond series BO-02-002R (ISIN code: RU000A1068R1) +0.1%;

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) +0.7%;

- Borets Capital bond series 1R-01 (ISIN code: RU000A105ZX2) +0.1%;

- AFK Sistema bond series 14 (ISIN code: RU000A101XN7) -0.3%.

In Russia, a national rating scale is used. The highest rating is "AAA", the lowest is "C", and there is also a "D" level, which indicates an actual default. The higher the rating, the more reliable the issuer is, and typically, the lower the yield on its bonds.

All corporate bonds have a rating, which allows investors to quickly assess the creditworthiness of the issuer.

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

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

Bonds rated from "BBB-" to "BBB+" are a transitional category. These may be reliable companies that are sensitive to adverse market and economic events (e.g., an increase in the key interest rate).

Bonds rated from "B-" to "BB+" are high-yield issuers (HY). The risks are high, as is the yield. These may be small and medium-sized businesses operating in risky sectors.

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

This overview was presented by Yulia Grishchenko, a member of the Moscow Exchange listing expert council, Ph.D. 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.