Corporate Bonds Trade Mixed on 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. 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 bond series BO-02-002R (ISIN code: RU000A1068R1) -0.1%;

- Borets Capital bond series 001P-05 (ISIN code: RU000A10EK71) +0.7%;

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) +0.3%;

- 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, issued by companies that may be sensitive to adverse market or economic events (e.g., interest rate hikes).

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

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

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