Russian Corporate Bonds Trade Mixed on MICEX Monday

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Corporate bonds on the Moscow Exchange traded mixed on Monday.

Corporate bonds are debt securities issued by Russian companies to raise financing. They generally 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 Issue BO-02-002R (ISIN code: RU000A1068R1) -0.1%;

- Borets Capital Bond Issue 001P-05 (ISIN code: RU000A10EK71) -0.6%;

- Polyus Bond Issue PBO-04 (ISIN code: RU000A108L81) +0.3%;

- AFK Sistema Bond Issue 14 (ISIN code: RU000A101XN7) +0.3%.

All corporate bonds have a credit rating that 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 and often invested in by pension funds and other institutional investors.

Bonds rated from "BBB+" to "BBB" are transitional. These may be reliable companies that are sensitive to adverse market or economic events (e.g., a key rate hike).

Bonds rated from "B+" to "BB" are high-yielding (HY) issuers. They carry high risks but also high returns. These are often 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 presented by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.