Liquid Corporate Bonds Trade Mixed in Last Session of Week

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

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

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) +0.3%;

- Borets Capital bond series 1R-01 (ISIN code: RU000A105ZX2) +0.2%;

- AFK Sistema bond series 14 (ISIN code: RU000A101XN7) +0.5%.

Ratings for issuers are based on a national scale. The higher the rating, the more reliable the issuer and, generally, the lower the yield on its bonds. The highest rating is "AAA", the lowest is "C", with the "D" category indicating an actual default.

"AAA" bonds 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 invested in by pension funds and other institutional investors.

Bonds rated from "BBB-" to "BBB+" fall into a transitional category. These may be reliable companies that are sensitive to adverse market or economic events (e.g., an increase 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 maximum.

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