On the last trading day of the week, the most liquid corporate bonds show mixed performance:
- RSX Bank bond issue B0-02-002R (ISIN: RU000A1068R1) +0.1%
- Polyus Gold bond issue PBO-04 (ISIN: RU000A108L81) +1%
- Boretz Capital 1R-01 bond (ISIN: RU000A105ZX2) -0.1%
- AFK Sistema bond issue 14 (ISIN: RU000A101XN7) -0.1%
The creditworthiness of issuers is assessed using the national rating scale. The higher the rating, the more reliable the issuer and, generally, the lower the yield. The highest rating is "AAA," the lowest is "C," and "D" signifies actual default.
"AAA" bonds are the most reliable, typically issued by large, systemically important companies with significant state involvement.
Bonds rated from "A-" to "AA+" are considered reliable instruments. They are often invested in by pension funds and other institutional investors.
Bonds rated from "BBB+" to "BBB-" are considered a transitional category. These may be reliable companies that are sensitive to adverse market and economic events (e.g., interest rate hikes).
Bonds rated from "B+" to "BB+" are high-yield bonds (HY) or high-yield debt (HOD). These issuers are generally small and medium-sized businesses operating in risky sectors.
Bonds rated "CCC" and "D" are close to default. These bonds carry the highest risks.
The analysis was presented by Yulia Grishchenko, a member of the listing expert council at the Moscow Exchange, Ph.D. in Economics, and head of the Financial and Investment Management Department at the Higher School of Management, Financial University under the Government of the Russian Federation.