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PRObondsmonitor. First corporate bond echelon. Inflationary loss



A sample of the 30 most liquid bonds of the first corporate echelon. The slow plunge continues, despite the growth in the stock market and a slight rise in OFZs. The reason is most likely overvalued. Bonds of the largest companies have long competed with OFZ and regional bonds for low yields. And in this competition, at least the falling OFZs have won. However, the rise in ruble inflation makes the stability of the corporate sector meaningless. At least at these levels of returns. Inflation in January, on an annualized basis – 5.2%. Which is higher than both December’s 4.9% and the inflation target of the Bank of Russia (4%). The corporate yield premium, on average, is insignificant; the speculative component, in the expectation of which one could buy, in this sector is traditionally small. So, as a class of investment assets, the first corporate echelon is now in little demand. I doubt that its demand will increase in the coming months. If sagging OFZs can be bought “on a rebound”, then corporations are likely to continue either the drawdown or, at best, oscillatory dynamics.

Of the unobvious advantages, these securities will remain available to a wide range of buyers even after the implementation of the restrictive initiatives of the Central Bank, i.e. unqualified investors.

PRObondsmonitor.  First corporate bond echelon.  Inflationary loss
Source of the corporate bond net price index (RUCBICP): https://www.moex.com/ru/index/RUCBICP/technical

@AndreyHohrin
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