Top Corporate Bonds Show Mixed Performance in Last Trading Day of Week

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Highly liquid corporate bonds showed mixed performance on the last trading day of the week:

- Russian Agricultural Bank (RASX) bond series BO-02-002R (ISIN code: RU000A1068R1) -0.21%;

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) -0.6%;

- 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, typically, the lower the yield on its bonds. The highest rating is "AAA", the lowest is "C", with an additional "D" level indicating an actual default.

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

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

Bonds rated from "BBB-" to "BBB+" represent a transitional category. These may be reliable companies that are sensitive to adverse market and economic events (for example, an increase in the key interest rate).

Bonds rated from "B-" to "BB+" are high-yield issuers (HYE). The risks are high, as is the yield. These can be small and medium-sized businesses operating in risky sectors.

Bonds rated "CCC" and "D" are on the brink of default. The risks associated with these securities are the highest.

This overview was provided by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.