Top Corporate Bonds Trade Mixed in Final Session of Week

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Most liquid corporate bonds ended the last trading day of the week with mixed performance, trading neutrally:

- Polus PBO-04 bond (ISIN code: RU000A108L81) -1.3%;

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

- AFK Sistema Series 14 bond (ISIN code: RU000A101XN7) -0.3%.

Ratings for 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", the lowest is "C", with the "D" level indicating actual default.

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

Bonds rated from "A-" to "AA+" are reliable securities. They are typically 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., a hike 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" and "D" are on the brink of default. The risks associated with these securities are maximum.

This overview was presented by Alexei 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.