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

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In the final trading day of the week, the most liquid corporate bonds in Russia show mixed performance:

- Polus PBO-04 bond (ISIN code: RU000A108L81) -0.3%;

- Borets Capital 001P-05 bond (ISIN code: RU000A10EK71) -0.4%;

- AFK Sistema Issue 14 bond (ISIN code: RU000A101XN7) +0.4%.

Ratings for these 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", while the lowest is "C", with the "D" category indicating actual default.

"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 securities, attracting investments from pension funds and other institutional investors.

Bonds rated from "BBB-" to "BBB+" are transitional, representing companies that may be 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 (HYE). These carry high risks but also offer high returns, often issued by 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, Doctor of Economics, 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.