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

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Top corporate bonds ended the last trading day of the week with mixed performance:

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

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

- AFK Sistema bond series 14 (ISIN code: RU000A101XN7) +0.3%

Ratings for bond issuers are based on a national scale. Higher ratings indicate more reliable issuers and typically lower bond yields. The highest rating is "AAA", the lowest is "C", with a "D" rating signifying an actual default.

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

Bonds rated from "A-" to "AA+" are considered reliable and are 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 (HY). They carry high risks but also high returns, typically issued by small or medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are at the brink of default, carrying maximum risks.

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