Top Liquid Corporate Bonds Traded on MICEX Listed Below

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Below is a list of the most liquid corporate bonds traded on the Moscow Exchange:

- RSXB Bond Series BO-02-002R (ISIN code - RU000A1068R1) -0.1%;

- Polyus Bond Series PBO-04 (ISIN code - RU000A108L81) -1.3%;

- Borets Capital Bond Series 001P-05 (ISIN code - RU000A10EK71) +0.3%;

- AFK Sistema Bond Series 14 (ISIN code - RU000A101XN7) -0.1%.

In Russia, a ratings scale is used:

“AAA” bonds are the most reliable. These are large systemically important companies, usually with state participation.

Bonds rated from “A-” to “AA+” are reliable securities. Pension funds and other institutional investors invest in them.

Bonds rated from “BBB-” to “BBB+” are transitional category. These may be reliable companies that are sensitive to adverse market and economic events (e.g., an increase in the key interest rate).

Bonds rated from “B-” to “BB+” are high-yield issuers (HY). Risks are high, as is the yield. These can be small and medium-sized businesses operating in risky sectors.

Bonds rated “CCC” or “D” are on the brink of default. The risks for these securities are maximum.

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