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. 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:

- Russian Agricultural Bank (ROSSELHOBANK) Bond Series BO-02-002R (ISIN: RU000A1068R1) -0.1%

- Borets Capital Bond Series 001P-05 (ISIN: RU000A10EK71) -0.2%

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

- AFKSistema 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 commonly invested in by pension funds and other institutional investors.

Bonds rated from BBB+ to BBB+ are transitional, 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-yielding, with higher risks and returns. These are often small or medium-sized businesses operating in riskier sectors.

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

This overview was provided by Alexey Grishchenko, Doctor of Economics, 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.