Russian Corporate Bonds Trade Mixed on Moscow Exchange Monday

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Corporate bonds traded on the Moscow Exchange (MOEX) were mixed 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 MOEX:

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

- Polus bond series PBO-04 (ISIN: RU000A108L81) -0.5%;

- Borets Capital bond series 001P-05 (ISIN: RU000A10EK71) +0.1%;

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

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

AAA-rated bonds are the safest, typically issued by large, systemically important companies, often with state participation.

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

Bonds rated from BBB+ to BBB are transitional, representing companies that may be sensitive to adverse market or economic conditions (e.g., an increase in the key interest rate).

Bonds rated from B+ to BB are high-yield (HY) or junk bonds. They carry higher risks but also offer higher returns, often issued by small or medium-sized businesses operating in risky sectors.

CCC and D-rated bonds are on the brink of default, carrying the highest risks.

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