Top Corporate Bonds Show Negative Dynamics in Last Trading Day of Week

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Top-traded corporate bonds in Russia closed the week on a negative note:

- Polus bond PBO-04 (ISIN code: RU000A108L81) -0.6%

- Borets Capital bond 001P-05 (ISIN code: RU000A10EK71) -0.5%

- AFK Sistema bond Series 14 (ISIN code: RU000A101XN7) -0.2%

Companies are rated on a national scale, where a higher rating indicates greater reliability and typically lower bond yields. The highest rating is "AAA", the lowest is "C", with "D" signifying an actual default.

"AAA" bonds are the safest, issued by large, systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable and attract investments from pension funds and other institutional investors.

Bonds rated "BBB-" to "BBB+" are transitional, issued by companies that may be sensitive to adverse market or economic conditions (e.g., interest rate hikes).

Bonds rated "B-" to "BB+" are high-yield (HY) bonds, offering higher returns but also higher risks, often issued by small or medium-sized businesses in risky sectors.

Bonds rated "CCC" or "D" are near default, carrying the highest risks.

This overview was provided by Alexey Grishchenko, Doctor of Economics, 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.