Russian Corporate Bonds Trade Mixed on MICEX Monday

© ООО Региональные новости

Corporate bonds on the Moscow Exchange are trading mixed on Monday.

Corporate bonds are debt securities issued by Russian companies to raise capital. 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:

- RSXB (ISIN: RU000A1068R1) -0.1%

- Borets Capital 001P-05 (ISIN: RU000A10EK71) -0.1%

- Polyus PBO-04 (ISIN: RU000A108L81) +0.1%

- AFK Sistema Series 14 (ISIN: RU000A101XN7) +0.1%

All corporate bonds have a credit rating that helps investors quickly assess the creditworthiness of the issuer.

Bonds rated "AAA" are the safest, typically issued by large systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities, commonly 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., an increase in the key interest rate).

Bonds rated from "B+" to "BB" are high-yield issuers (HYD). They carry high risks but also offer high returns. These can 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 provided 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.