Corporate Bond Trading Activity Surges on MICEX

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

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) +0.3%;

- Borets Capital bond series 001P-05 (ISIN code: RU000A10EK71) +0.3%;

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

In Russia, a credit rating scale is used to assess the reliability of bonds:

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

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

- Bonds rated from "BBB-" to "BBB+" are transitional category bonds, issued by companies that may be sensitive to adverse market or economic events (e.g., interest rate hikes).

- Bonds rated from "B-" to "BB+" are high-yield issuers (HY), with higher risks and higher returns, often issued by small and medium-sized businesses operating in risky sectors.

- Bonds rated "CCC" or "D" are on the brink of default, with maximum risks.

This overview was presented 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.