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

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

- Polyus PBO-04 bond (ISIN code: RU000A108L81) +0.1%;

- Borets Capital 001P-05 bond (ISIN code: RU000A10EK71) +0.1%;

- AFK Sistema Series 14 bond (ISIN code: RU000A101XN7) -0.2%.

For issuers, a national rating scale is used. 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" level, which indicates an actual default.

"AAA" bonds are the most reliable. These are large systemically important companies, usually with state participation.

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

Bonds rated from "BBB-" to "BBB+" are transitional category. These may be reliable companies that are sensitive to adverse events in the market and economy (for example, 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 and medium-sized businesses operating in risky sectors.

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

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