Russian Corporate Bonds Trade Neutrally on Moex Monday

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Corporate Bonds on Moscow Exchange Trade Neutrally 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:

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

- Polyus Bond PBO-04 (ISIN code: RU000A108L81) -0.1%;

- AFKSistema Bond Issue 14 (ISIN code: RU000A101XN7) +0.3%.

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

AAA-rated bonds are the safest, issued by large systemically important companies, often with state participation.

Bonds rated from A- to AA+ are reliable securities, favored by pension funds and other institutional investors.

Bonds rated from BBB- to BBB+ are transitional category, 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-yielding issuers (HYE). They carry higher risks but also offer higher returns, typically issued by small and medium-sized businesses operating in risky sectors.

CCC and D-rated bonds are near default, carrying maximum risks.

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