Russian Corporate Bonds Trade Mixed on Moex Monday

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Corporate bonds on the Moscow Exchange are trading mixed on Monday.

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 are some of the most liquid corporate bonds traded on the Moscow Exchange:

- RSXB Bond Series BO-02-002R (ISIN: RU000A1068R1) -0.1%

- Polyus Bond Series PBO-04 (ISIN: RU000A108L81) +0.5%

- Borets Capital Bond Series 1R-01 (ISIN: RU000A105ZX2) +0.4%

- 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, typically issued by large systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities, favored by pension funds and other institutional investors.

Bonds rated from "BBB-" to "BBB+" are transitional category bonds. These may be reliable companies that are sensitive to adverse market and economic events (e.g., interest rate hikes).

Bonds rated from "B-" to "BB+" are high-yield issuers (HYG). They carry high risks but also offer high returns. These can be small and medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are near default. These bonds carry the highest risks.

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