Russian Corporate Bonds Trade Flat on Moex Monday

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Corporate bonds on the Moscow Exchange are trading without a clear trend on Monday.

Corporate bonds are debt securities issued by Russian companies to raise capital. 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) -0.3%;

- Polyus Bond PBO-04 (ISIN code: RU000A108L81) -0.2%;

- 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, typically issued by large systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities, favored by pension funds and other institutional investors.

Bonds rated from "BBB-" to "BBB+" are transitional category bonds. These may be reliable companies that are sensitive to adverse market or economic events (e.g., interest rate hikes).

Bonds rated from "B-" to "BB+" are high-yielding issuers (HYE). They carry higher risks but also higher returns, often issued by small or medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are near default. These carry the highest risks.

This overview was provided by Alexei 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.