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

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Highly liquid corporate bonds closed the last trading day of the week with a neutral trend:

- Polyus PBO-04 bond (ISIN code - RU000A108L81) +2%;

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

- AFK Sistema Issue 14 bond (ISIN code - RU000A101XN7) -0.2%.

Companies are rated using a national rating scale. The higher the rating, the more reliable the issuer and typically the lower the bond yield. The highest rating is "AAA", the lowest is "C", with an additional "D" category indicating 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 typically invested in by pension funds and other institutional investors.

Bonds rated from "BBB-" to "BBB+" are transitional, issued by 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-yielding, with higher risks and higher returns. These are typically small and medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are on the brink of default, carrying the highest level of risk.

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