Top Corporate Bonds Show Mixed Performance in Last Trading Day of Week

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Here is the latest performance of the most liquid corporate bonds on the last trading day of the week:

- Polyus bond issue PBO-04 (ISIN code: RU000A108L81) +0.7%

- Borets Capital bond issue 001P-05 (ISIN code: RU000A10EK71) -0.2%

- AFK Sistema bond issue 14 (ISIN code: RU000A101XN7) -0.1%

Ratings for bond issuers are based on a national scale. The higher the rating, the more reliable the issuer and, typically, the lower the yield on its bonds. The highest rating is "AAA", the lowest is "C", and there is also a "D" category, which indicates a default.

"AAA" bonds are the most reliable. These are 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., 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 or medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are on the brink of default. The risks for these securities are the highest.

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