 |
VOOZH | about |
|
VOOZH | about |
A bond is a debt security reflecting the loan relationship between an investor (lender) and an issuer (borrower). Simply put, a bond is a debt. By issuing bonds, the company borrows money and undertakes to return it to the owner of the bond with interest over time. For a company, issuing bonds is one way to raise money for its development.
Bonds have lower volatility compared to stocks and are most often used as a conservative part of the investment portfolio. Coupon bonds yield steady cash flow. Some investors are using the bonds as a temporary haven for their money, waiting for bargains on the stock.
The main properties of the bonds are:
The denomination of the bond is the price at which the bond will be redeemed (redeemed by the issuer from the investor) at the end of its term. Most ruble bonds are issued with a face value of 1000 rubles.
Maturity date is the date on which the bond will be redeemed. There is also an offer - sometimes the issuer can set the date of the offer, this is when he can redeem the bond from the investor by the maturity date. An investor can sell a bond to an offer.
Depreciation - for most bonds, the face value is paid at the end of the circulation term - this is called repayment. But there are bonds with a depreciation of the face value - in this case, the face value is repaid at once, and paid in installments at the entire term of the bond.
Market price - in the market, the price of a bond can differ from the face value and be more or less than the face value. The bond price is expressed as a percentage of the face value, 100% - the price corresponds to the face value of 1000 rubles, 101% - the price is 1% higher than the face value, the price is 1010 rubles. In the market, the price of a bond fluctuates depending on market conditions, interest rates, demand and supply. Usually the range of oscillations is 95-105% of the nominal. But if there is a risk of non-payment of the coupon, then the price may fall and stronger. The closer the maturity date, the closer the bond price to par.
A coupon is cash that the issuer pays periodically on a bond. The coupon rate is expressed as a percentage per annum and shows the bond's annual coupon yield to par. For example, a bond denomination of 1000 rubles, a coupon of 10%, payment twice a year. This means that the investor will receive income of 100 rubles in two payments of 50 rubles each.
According to the method of obtaining income, bonds are divided into:
Under the coupon bond, the issuer pays money (coupon) at regular intervals. Payments on bonds can be made once a year, once in half a year, once in a quarter - this is a coupon period. Coupon income is accrued every day, but is paid only on the date of the coupon, which is known in advance. The money comes into your account usually 2-3 days after the coupon payment date.
The amount of coupon income that has accumulated for the coupon period, but has not yet been paid, is called accumulated coupon income (NCD). After the coupon is paid, the NKD is reset to zero and begins to accumulate again.
If you buy a bond, you must pay the seller of the NKD, which has accumulated by the day of the transaction, thereby compensating him for the lost income (since he loses the coupon when selling). If you sell a bond, then the buyer pays the IDC to you.
For example, the coupon value is 40 rubles, the coupon payment period is 182 days (once every six months). Let's say 3 months (90 days) have passed since the last coupon payment, in this case the tax code is equal to 20 rubles.
The coupon on a bond can be fixed and variable. For a bond with a fixed coupon, the amount of the coupon for the entire period of payments is constant, for a bond with a variable coupon, the amount may change.
The value of the variable coupon is tied to some basic interest rate, for example, LIBOR (international interbank loan market rate) or refinancing rate, and is set as a base rate + some other percentage (surcharge). Since the base rate can change over time, the size of the coupon will also change. For example, the coupon value is calculated as a base rate of + 2 percentage points. In the first year, the base rate is 3%, which means the coupon size is 3 + 2=5%, in the second year 3.5 + 2=5.5%.
On discount bonds, the coupon is not paid, the investor receives income due to the fact that the bond is sold below par (at a discount). For example, the company sells a bond with a face value of 1000 rubles for 900. Due to the difference between the sale price and the repayment price, the investor receives income.
According to the collateral method, bonds are divided into:
By issuer status, bonds are divided into:
Main item: OFZ (Federal Loan Bonds)
Main article: US government bonds (Treasurys)
Who and how allows the United States to live on debt for decades.
By type of repayment, bonds are divided into:
prepaid - under such bonds, the issuer has the opportunity to repay them ahead of schedule until the maturity date
By convertibility, bonds are divided into:
According to the indexation of payments, bonds are divided into:
A separate group is income bonds. For income bonds, the company has the right to pay interest income only if there is a profit. Income bonds are divided into:
If a company issues bonds abroad, then they are divided into:
In early October 2023, the world's largest government bond markets underwent a powerful sell-off: bond yields reached post-crisis highs around the world: the yield on 30-year US bonds reached 5% and then retreated. German bond yields reached 3%. After the outbreak of the conflict with Russia, many governments have to pay much more for the opportunity to service their gigantic debts.
There is a growing sense that interest rates in the US and its allies will remain high for a long time to contain inflation.
In July 2019, negative yields begin to take hold in the European junk bond market.
That is, you have a bond that nobody needs, and you pay money for keeping a bond that nobody needs.
The global volume of negative-yielding securities hovers around $12.8 trillion, according to Bank of America Merrill Lynch.
Main article: Corporate bond defaults
President Vladimir Putin in December 2015, in his annual address to the Federal Assembly, asked the government to submit proposals for the development of the corporate bond market and to exempt from taxation, including personal income tax, coupon income on bonds.
On March 22, 2017, the State Duma of the Russian Federation adopted a law on the exemption of individuals and legal entities from paying personal income tax from coupon income received from circulating ruble bonds of Russian organizations, if these bonds were issued in 2017-2020.
The law was adopted under the name "On Amendments to Chapter 23 of the Second Part of the Tax Code of the Russian Federation."
Coupon income on such bonds is subject to personal income tax only if the amount of the coupon exceeds the amount of interest calculated based on the nominal value of the bonds and increased by 5% of the refinancing rate of the Bank of Russia, effective during the period for which the income was paid.
Income in the form of a discount, obtained upon repayment of bonds denominated in rubles and issued in 2017-2020. bonds of Russian organizations, are also exempted from paying personal income tax without restrictions on the amount.
"The proposed measures will ensure the equalization of the conditions for taxation of interest income of individuals from investments in deposits in banks and in circulating bonds of Russian organizations," the explanatory note to the document says.
The law comes into force 30 days after its official publication, but not earlier than the first day of the next tax period on personal income tax.
The income of individuals on bonds is taxed at 13%. The tax is paid on coupon income and on income from the sale of bonds. The tax on coupons is paid by the issuer himself, that is, money comes to your account already "clean." Sales income tax withholds your broker by debiting your account at the beginning of the year or when you withdraw funds.
The tax base when selling bonds is calculated as follows:
(Income from sale + NAC received) - (Purchase expenses + NAC paid) + Coupon income
Tax base for redemption of bonds:
Bond Face Value - (Purchase Expenses + NCD Paid) + Coupon Income
A conditional example: they bought a bond at a price of 99% - 990 rubles, NKD at the time of purchase 5 rubles, which means the cost of buying 990 + 5=995. Coupon 40 rubles. After some time, they sold at a price of 99.5% - 995 rubles, NKD 10 rubles, which means income from the sale of 995 + 10=1005. Income 1005-995=10 rubles. Tax=10 * 0.13=1.3 rubles. Coupon tax 40 * 0.13=5.2 rubles, that is, the account will receive not 40 rubles, but 34.8 rubles. Coupon income tax is withheld immediately upon receipt of income into the account. The broker will withhold income tax on transactions early next year or when withdrawing funds from an account.
The tax base is reduced by the amounts of actually incurred and documented expenses related to the acquisition, storage, sale and repayment of securities.
The following personal income from securities transactions is not taxable:
Main article: How to choose and buy bonds
In 2025, 23 issuer defaults were recorded on the Russian bond market - 3.2% of the total number of companies that placed bonds. This follows from the ACRA study published on March 25, 2026.
The number of defaults more than doubled compared to 2024, which is partly due to the growth of defaults in the CFA segment. Excluding them, the default rate was 2.8%. ACRA indicated: negative dynamics developed against the background of high rates, a slowdown in GDP growth and a reduction in liquidity in the market in the second half of 2025.
FROM 1.01. 2021 to 20.03. 2026, the agency recorded more than 50 defaults divided into two periods: from 1.01. 2021 to 31.12. 2023 (soft DCT time) and from 1.01. 2024 (increased rates period). The first group accounted for 46% of defaults, the second - 54%.
The main share of defaults falls on companies of wholesale trade and financial activities (excluding banking, leasing and insurance). If in the first period the most common were defaults in 1.5-3 years, then in the second they were distributed evenly, while the number of cases that occurred in less than a year and a half increased by a multiple.
In the first group, the peak of defaults fell on the BB and BB + categories, in the second two defaults were recorded among issuers with A rating and one with BBB + rating. In the first group, the maximum rating category at which the default was made was the BBB level.
The main share of issuers in both groups was made up of small companies. Eight issuers from the first group and ten of the second FFO indicators before net interest payments and taxes were less than 100 million rubles.
The first group was dominated by companies with a high and very high level of debt burden (debt to FFO ratio - 3.0-5.0x and more than 5.0x). In the second group, the largest number of issuers fell into the 1.5-3.0x category. ACRA explained this by the exposure of small companies to external factors.
The agency does not rule out further growth in defaults in 2026 and recommends that investors exercise caution when evaluating small companies operating in high-risk industries.[1]
At the end of 2025, the volume of government bond placements in Russia increased to 7.2 trillion rubles. The figure is 1.7 times more than the volume of borrowings for 2024. This is evidenced by the data of the Central Bank of the Russian Federation, published in February 2026. The growth was facilitated by fixed-coupon bonds, demand for which increased due to a decrease in the key rate. The proceeds from the placement amounted to 78.4 billion rubles, during the additional placement of government securities after auctions, about 4.5 billion rubles were raised.[2]
At the end of 2025, the total volume of placement of Russian bonds reached 66.2 trillion, rubles showing an increase of 20% compared to 2024. The data was officially published on January 13, 2026 Frank Media by the publication, citing statistics from an analytical agency Cbonds specializing in information about the debt market.
Almost half of the total market volume, 35.5 trillion rubles, was corporate bonds (bonds) - debt securities of companies. In December 2025, this segment grew by 3.38% compared to November, which was the maximum monthly growth for the entire past year.
In annual terms, the growth in the volume of the corporate bond market amounted to 14.45%. The activity of issuers, securities issuing organizations in December 2025 was high: 116 companies entered the market, placing 312 new issues, including digital financial assets (Digital financial assets in Russia 'CFA). For comparison, in December 2024, 114 issuers with 298 issues were placed.
The market volume of government bonds, or federal loan bonds (OFZ), in December 2025 amounted to 30 trillion rubles, an increase of 2.65% per month. At the end of 2025, this segment grew by 29.76%: in December 2024, its volume was estimated at 23.1 trillion rubles. The share of municipal bonds issued by regions and cities remains insignificant - 609 billion rubles as of the end of December 2025.
Ministry of Finance Russia plans to maintain an active position on borrowing in the domestic market in 2026. The estimated volume of placement of ruble OFZs is planned at a level of no more than 6.47 trillion rubles at face value. The placement of foreign currency bonds, which replace securities issued earlier for non-residents, is limited to $1 billion. In 2025, the volume of OFZ placement was increased to 6.9 trillion rubles, which exceeds the planned figure for the coming period.[3]
The Russian debt market is stable by April 2024, borrowing is growing, but the structure is changing.
The volume of ruble bonds at the outstanding balance is 40.7 trillion rubles, including credit institutions - 2.72 trillion, other financial institutions - 7.5 trillion, government bodies - 22 trillion, non-financial organizations - 8.4 trillion.
Foreign exchange bonds increased by almost $40 billion from February 22 to $56 billion, largely due to replacement bonds.
From the beginning of the conflict in Ukraine to March 2024, inclusive, the net issue of ruble bonds for all issuers amounted to 8.6 trillion or an average of 330 billion per month, over the past 12 months - 5.1 trillion, since the beginning of the monetary policy tightening cycle - 2.84 trillion (406 billion per month), and since the beginning of the year - 674 billion.
For comparison, from 2017 to 2021 inclusive, the average monthly net issue was 285 billion, but then the purchasing power of the ruble was different. At face value, the pace has grown by 15% since the beginning of the special operation in Ukraine, and taking into account inflation, it fell by 15%.
The tightening cycle of monetary policy did not affect either corporate lending or the debt market - the increase in lending and debt in bonds is comparable to the peak period in low rates in 2022-2023.
From 2022, the main increase in debt occurs in the public debt and in other financial organizations, while non-financial business does not increase debt.
In 2023, the total volume of defaults of Russian corporations to repay corporate debt amounted to 6.4 billion rubles, which is equivalent to about 0.1% of the total outstanding face value of corporate bond loans. Such data are contained in the "Debt Market Bulletin," published in May 2024 by the Analytical Credit Rating Agency (ACRA).
In 2023, cases of default on bonds were noted at companies included in Goldman Group (Goldman Group Management Company, Myasnichy TD, IS Petroleum, UnitedAgroElite), as well as at Syntek TD. With the onset of 2024, KIWI Finance LLC became the only issuer to default - as a result of the revocation of the license from Kiwi Bank.
As ACRA experts emphasize, in the face of tough tightening of monetary policy, high risks of refinancing previously placed bond loans for companies from the high-yield bond (VDO) segment with low liquidity and debt burden servicing remain. At the same time, analysts do not expect a significant increase in the number of defaults in the bond market in 2024, taking into account the adaptation of issuers to increased interest rates in recent months.
About 80% of public debt is covered by credit ratings, according to the bulletin. About 77% of the total volume of circulating bonds have ratings of categories "A-" and higher on the national scale of the Russian Federation, which corresponds to the projected probability of default during 2024 of less than 1.5% in the ruble bond market.
The main volume of traded bond loans falls on debt instruments of issuers of the first echelon (53% of the market), the second echelon (almost 24%) and the high-risk segment of the VDO (about 3%). Companies without assigned credit ratings, including mortgage agents, collectively account for roughly 20% of the bond market.
In the second quarter of 2024, according to ACRA forecasts, the total volume of planned redemptions of bonds may amount to about 500 billion rubles, exceeding by 7% the indicator of the first three months of the year. At the same time, the agency expects that against the background of maintaining a tight monetary policy, the activity of borrowers with high credit ratings will not change significantly, while issuers of the VDO sector will reduce the volume of new placements due to high yields of risk-free assets.[4]
The Russian corporate bond market in 2023 grew by 5 trillion rubles compared to 2022 and reached 23.9 trillion rubles. There has been no such rise for 10 years, according to the materials of the Central Bank of the Russian Federation, published on January 17, 2024.
As the regulator notes, a significant contribution to the market was made through the placement of replacement bonds and bonds nominated in yuan.
Financing in yuan in Russia is becoming more expensive. Borrowing costs are rising as exporters need to refinance debt.
In December 2023, the volume of the corporate bond market at an outstanding face value increased by 1.56 trillion rubles, to 23.9 trillion rubles. In relative terms, it increased by 7%, which was the largest monthly growth rate in 2023. At the same time, in November there was a slight decrease in the market volume - by 0.1%.
According to the Central Bank, in the corporate bond market, the average daily volumes of secondary exchange trading in December 2023 increased, amounting to 21.8 billion rubles a day (in November - 16.5 billion rubles). Indicative corporate bond yields (RUCBTRNS) rose only three basis points to 13.85% in December compared to November. The yield of OFZ with a comparable duration increased by 95 b. p. Up to 12.51%, specified in the document.
Economists previously predicted that the volume of new placements on the ruble corporate bond market in 2023 could become a record and exceed 5 trillion rubles. HSE In their report, they noted an increase in the demand for corporate bonds with the need to raise funds for the implementation of investment programs and refinancing obligations in closed foreign markets.
Managing Director of the NKR Dmitry Orekhov considers their advantages to be another driver of the corporate bond market: the absence of sanctions risks, protection against the devaluation of the ruble, high yields in foreign currency and good quality of issuers.
FINANCIAL MARKET RISK OVERVIEW
As of May 2023, the volume of issued debt securities in the domestic market Russia at par value is 36.2 trillion for bonds denominated in, rubles of which 36.1 trillion, i.e. almost all are bonds with a maturity of more than one year.
20 trillion - public debt, 8.2 trillion from non-financial companies, 2.7 trillion from banks, 5.1 trillion from other non-financial companies.
In the coming year, ruble bonds of 2.2 trillion are suitable for repayment, of which 1.5 trillion are from the federal government.
The central bank has changed the accounting and display methodology, which leads to slightly different conclusions, Spydell Finance wrote.
In January-April 2023, the balance of ruble bonds on outstanding debt increased by 1,042 billion, of which the federal government accounted for 826 billion, credit institutions - plus 46 billion, other financial institutions - plus 253 billion, and for non-financial organizations - minus 22 billion.
Since August 2022, when the Russian debt market thawed, the volume of ruble bonds on outstanding debt has grown by 4.6 trillion, of which 3.5 trillion fell on the state, and non-financial companies did not borrow.
The debt market in Russia is working, but a little in the wrong direction. Issued debt securities in foreign currency at face value amount to 3.6 trillion in ruble equivalent for all issuers and all the increase occurred in the last 10 months.
Back in June 2022, bonds of Russian issuers in foreign currency were 900 billion and increased by 2.7 trillion, where non-financial companies increased debt in bonds by 833 billion, and mysterious other non-financial organizations immediately by 1.7 trillion. The state does not borrow in foreign currency now, but insignificant changes in the bank.
Formally, the debt market works, but in what currency is the debt placed? There is no answer, and the Central Bank does not comment in any way. And that these are "other financial institutions" that vacuum the entire market and are the main issuer of bonds in Russia?
It is curious that there is essentially no demand for ruble debt, since almost the entire issue in state funds, which were mainly bought by banks.
On February 7, 2023, Дом.РФ announced the launch of a digital mortgage securities platform (ICB), which allows original banks to apply for securitization, as well as download and check regular reports as part of mortgage pool service. The project was implemented with the participation of the FinTech Association. Read more here.
In 2022, the leader changed on the Russian debt market for the first time in 5 years. Gazprombank bought the most debts, the study said. Cbonds
As Kommersant writes with reference to this report, in 2022 Gazprombank participated in the organization of 96 issues worth more than 271 billion rubles. Sberbank (SberCIB), which was in the lead in 2021, dropped to second place a year later with 247.6 billion rubles.
VTB Capital, which took second place in 2021, dropped out of the five largest organizers. The third place with an indicator of almost 200 billion rubles was retained by BC Region, the fourth was taken by Дом.РФ Bank (in 2021 it was in 8th place), over the year the company placed almost 171 billion rubles. The top five, as in 2021, was closed by Sovcombank with a result of 141.2 billion rubles.
The redistribution of places is associated with Western sanctions against the largest Russian credit organizations, Kommersant notes. Due to the increased risk, some issuers began to give preference to investment banks that did not fall under restrictions.
However, the isolation of the Russian market makes secondary sanctions less dangerous, so as the local debt market transforms, the role of state banks will be restored, its participants say.
In 2023, we should expect an increase in the number of placements of third-tier companies and high activity of issuers who historically entered the Eurobond market, believes Eduard Dzhabarov, Managing Director for Debt Capital Markets of the Investment Activities Department of Sberbank.
| Issuers do not have the opportunity to attract financing through Eurobonds, so companies will be more actively placed on the local Russian market, "adds Oleg Karpeev, director of issuers at Sinara Investment Bank[5] |
80.3 trillion rubles - just such a ruble debt was created by the Russian financial system for the entire period of its existence at the end of 2022.
In the structure of this debt, 51.9 trillion rubles (44.1 trillion bank loans + 7.8 trillion corporate ruble bonds) were distributed among the non-financial sector in Russia (companies) and another 28.4 trillion rubles among the population (all types of lending in favor of individuals).
10 years ago, corporate bonds accounted for only 8% of the business debt structure, by February 2018 they reached 16% and remained at about this level by the end of 2022 (the maximum was 18.1% in January 2021).
In bonds, corporate debt has grown 4 times in 10 years, twice in 5 years, but the last year the trend is negative (until November 2022).
For advanced economies, the main source of business funding is corporate bonds, which reach 75-95% in the structure of the largest corporations. For all public companies (they are the right to issue bonds), the share of the bond is on average 60%, and for all companies, taking into account small and medium-sized businesses, about 40-45%.
In this sense, Russia is still three times behind the United States in terms of the development of the open market, as the main source of business financing.
In 2022, corporate bonds worth more than 3 trillion rubles were placed in Russia (excluding short-term, "replacement" and yuan bonds), which is 0.2 trillion rubles lower than the record figure in 2021. This is evidenced by Cbonds data, which is cited by Kommersant on January 11, 2023.
In December 2022 alone, more than 0.86 trillion rubles were raised, which is almost twice the result of a year ago. This is the second largest result in the history of the Russian debt market, the newspaper notes: the company borrowed more funds in December 2020, when issuers raised over 1 trillion rubles.
Alexander Yermak, chief analyst of debt markets at BC Region, said that in December the yields of short OFZs returned to comfortable levels of 8% per annum, which are used as a benchmark for borrowing by corporate borrowers.
| In a situation of uncertainty, issuers prefer to borrow as long as the market allows them, "said Denis Leonov, head of the debt capital markets department at BCS Global Markets (BCS GM). |
During 2022, corporate bond yields grew unevenly following the dynamics of the Central Bank of the Russian Federation and OFZ rates. According to the Cbonds CBI aggregated yields index for companies of the first (ruAA- and higher rating) and the second (ruBBB - ruA +) echelons, the average level of yields increased by 300 and 500 bp, respectively. Of greatest interest is the expansion of credit spreads for these categories of issuers, whose average level reached peak values in 2022.
The situation in the secondary market has severely limited the possibility of conducting initial offerings, where investors, as a rule, require a higher level of profitability even in normal market conditions. When analyzing transactions of first-class issuers that entered the market in 2021 and 2022, experts note that in general, credit spreads have more than doubled in initial placements in some cases.[6]
You can find out the face value, market price, coupon rate, maturity date and other parameters of bonds traded on the Russian market on the websites of the Moscow Exchange, Rusbonds.ru[7].
| 👁 Шестерня | The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |
