Top Corporate Bonds Trade Mixed

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Corporate bonds are debt securities issued by Russian companies to raise financing. Typically, they offer higher yields than government bonds but carry credit risks associated with the issuer.

Below is a list of the most liquid corporate bonds traded on the Moscow Exchange:

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

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) -0.8%;

- Borets Capital bond series 1R-01 (ISIN code: RU000A105ZX2) -0.1%;

- AFK Sistema bond series 14 (ISIN code: RU000A101XN7) +0.1%.

All corporate bonds have a credit rating that 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 can 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 (HYG). 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 the highest.

This overview was presented 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.