Russian Corporate Bonds Mostly Gain on MICEX Monday

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Corporate bonds on the Moscow Exchange (MOEX) are mostly rising on Monday.

Corporate bonds are debt securities issued by Russian companies to raise capital. They typically offer higher yields than government bonds but carry credit risks associated with the issuer.

Below are some of the most liquid corporate bonds traded on the Moscow Exchange:

- Russian Agricultural Bank (ROSSELHOBANK) 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%;

- AFKSistema bond series 14 (ISIN code: RU000A101XN7) -0.1%.

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

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

Bonds rated from "A-" to "AA+" are reliable securities. They are usually invested in by pension funds and other institutional investors.

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., a rise in the key interest rate).

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

Bonds rated "CCC" or "D" are on the brink of default. The risks associated with these securities are the highest.

This overview was provided 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.