Russian Corporate Bonds Trade Flat on MICEX Monday

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Corporate bonds on the Moscow Exchange (MOEX) are trading with no clear trend on Monday.

Corporate bonds are debt securities issued by Russian companies to raise capital. They typically 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 Bond PBO-04 (ISIN code: RU000A108L81) -0.5%;

- 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 usually large systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities. They are typically 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., interest rate hikes).

Bonds rated from "B-" to "BB+" are high-yield issuers (HY). They carry high risks but also offer high returns. These can be small and medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are on the brink of default. These carry the highest risks.

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