Liquid Corporate Bonds Trade Mixed in Last Session of Week

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Most liquid corporate bonds closed the last trading day of the week in positive territory:

- Russian Agricultural Bank (RSKH) bond series BO-02-002R (ISIN code: RU000A1068R1) +0.2%;

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) -1.4%;

- Borets Capital bond series 001P-05 (ISIN code: RU000A10EK71) +0.1%;

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

Ratings for issuers are based on a national scale. The higher the rating, the more reliable the issuer and, generally, the lower the yield on its bonds. The highest rating is "AAA", the lowest is "C", with an additional "D" category indicating actual default.

"AAA" bonds are the most reliable. These are typically large, systemically important companies, often with state participation.

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

Bonds rated from "BBB-" to "BBB+" fall into a transitional category. These may 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-yield issuers (HY). The risks are high, as is the yield. These could be small or medium-sized businesses operating in risky sectors.

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

This overview was presented 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.