Russian Corporate Bonds Mostly Rise on Moex Monday

© ООО Региональные новости

Corporate bonds on the Moscow Exchange 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:

- RSXB (Russian Agricultural Bank) Bond Series BO-02-002R (ISIN: RU000A1068R1) +0.1%

- Polyus Bond Series PBO-04 (ISIN: RU000A108L81) +0.7%

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

- AFK Sistema Bond Series 14 (ISIN: RU000A101XN7) +0.3%

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 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 transitional category. These may be reliable companies that are sensitive to adverse market and economic events (e.g., a key interest rate hike).

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

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

Overview provided by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.