Russian Corporate Bonds Trade Flat on Moex Monday

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Corporate bonds on the Moscow Exchange are trading with no 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 PBO-04 Bond (ISIN code: RU000A108L81) -0.2%;

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

All corporate bonds have a credit rating that helps investors quickly assess the creditworthiness of the issuer.

AAA-rated bonds 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. 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 (HY) issuers. They carry high risks but also offer high returns, typically issued by small and medium-sized businesses operating in risky sectors.

CCC and D-rated bonds are on the brink of default, carrying maximum risks.

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