Most Liquid Corporate Bonds Traded on Moscow Exchange Listed Below

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

- Polus PBO-04 bond (ISIN code: RU000A108L81) -0.1%;

- Borets Capital 001P-05 bond (ISIN code: RU000A10EK71) +0.2%;

- AFK Sistema Bond Issue 14 (ISIN code: RU000A101XN7) -0.1%.

In Russia, a ratings scale is used:

«AAA» bonds are the most reliable. These are large systemically important companies, usually with state participation.

Bonds rated from «A-» to «AA+» are reliable securities. Pension funds and other institutional investors invest in them.

Bonds rated from «BBB+» to «BBB+» are in a transitional category. 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 may 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 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.