Russian Corporate Bonds Trade Mixed on Moex Monday

© ООО Региональные новости

Corporate bonds traded on the Moscow Exchange are moving in different directions 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:

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

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) -1.2%;

- Borets Capital bond series 001P-05 (ISIN code: RU000A10EK71) -0.2%;

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

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

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

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

Bonds rated from BBB- to BBB+ are transitional category. These can 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-yielding issuers (HYD). They carry high risks but also offer high returns. These may be small or medium-sized businesses operating in risky sectors.

Bonds rated CCC or D are on the brink of default, carrying maximum risks.

This overview was provided 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.