Top Corporate Bonds Trade Mixed in Last Session of Week

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Most liquid corporate bonds traded mixed on the last trading day of the week:

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

- Polyus Bond Series PBO-04 (ISIN code - RU000A108L81) -0.5%;

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

- AFK Sistema Bond Series 14 (ISIN code - RU000A101XN7) +0.5%.

For issuers, a national rating scale is used. 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 may 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 (HY). Risks are high, as is the yield. This can be small or medium-sized businesses operating in a risky sector.

Bonds rated "CCC" or "D" are on the brink of default. Risks for such securities are maximum.

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