Russian Corporate Bonds Trade Lower on Moex Monday

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Corporate Bonds on Moscow Exchange Trade Lower on Monday

Corporate bonds are debt securities issued by Russian companies to raise capital. Typically, they 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 Series 001P-05 (ISIN: RU000A10EK71) -0.1%;

- Polyus Bond Series PBO-04 (ISIN: RU000A108L81) -1%;

- AFKSistema Bond Series 14 (ISIN: RU000A101XN7) -0.1%.

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

Bonds rated "AAA" are the safest. These are typically large, systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities. They 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 and economic events (e.g., an increase in the key interest rate).

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

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

This overview was prepared 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.