Russian Corporate Bonds Trade Neutrally on MICEX Monday

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Corporate bonds on the Moscow Exchange are trading neutrally on Monday.

Corporate bonds are debt securities issued by Russian companies to raise financing. 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 001P-05 (ISIN code - RU000A10EK71) -0.1%;

- Polyus PBO-04 Bond (ISIN code - RU000A108L81) +0.1%;

- AFK Sistema Bond Series 14 (ISIN code - 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 most reliable. These are typically large systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities. They are commonly 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. Risks for 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 "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.