Russian Corporate Bonds Trade Flat on MICEX Monday

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Corporate bonds on the Moscow Exchange (MOEX) are trading with no significant price movements 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) +0.1%;

- Polyus Bond PBO-04 (ISIN code - RU000A108L81) +1%;

- AFK Sistema Bond Issue 14 (ISIN code - RU000A101XN7) -0.2%.

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

Bonds rated "AAA" are the safest. These are usually large, systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities. Pension funds and other institutional investors invest in these bonds.

Bonds rated from "BBB-" to "BBB+" are transitional category. 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 (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. Risks for these bonds are maximum.

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