Russian Corporate Bonds Trade Mixed on MICEX Monday

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Corporate bonds traded on the Moscow Exchange are showing mixed performance 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 Bond Series BO-02-002R (ISIN code: RU000A1068R1) +0.1%

- Polyus Bond Series PBO-04 (ISIN code: RU000A108L81) -1%

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

- AFK Systems Bond Series 14 (ISIN code: RU000A101XN7) +0.2%

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

AAA-rated bonds are the safest. These are usually large, systemically important companies, often with state participation.

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

Bonds rated from BBB- to BBB+ are transitional. These may be reliable companies that are sensitive to adverse market and economic events (e.g., an increase in the key interest rate).

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

CCC and D-rated bonds are on the brink of default. The risks associated with these bonds are maximum.

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