Next Tuesday, the placement of bonds of Obuv Rossii LLC (1.5 billion rubles, 4 years, coupon / yield 11% / 11.57%) starts. How justified is the yield in comparison with other bonds of similar credit quality (OR has a BBB (RU) credit rating from Expert RA) and in comparison with the outstanding issues of the issuer itself?
Let’s take a look at the yields on bonds that are rated BBB on the national scale (including BBB- and BBB +). The sample includes issues ranging from 1 to 5 billion rubles. 2 market issues “Russian shoes»Show yields of 10.2 and 10.8%, which is slightly higher than the average rates for the respective maturities. However, the same is true for PKB and Brusniki, as well as for the PRs included in the public portfolios of PRObonds. The upcoming issue with an effective yield of 11.57% will give a small premium to the traded issues, but it will also not remain close to the average yields for this group of ratings.
Aside from the OP, the tandem of increased yields looks interesting.Garant Invest“And PKB… The increased profitability of the former (Garant-Invest is the leader in the sample in terms of profitability) reflects the attitude of investors towards the rental business (Garant-Invest is the owner of shopping centers) and a negative outlook on the credit rating. “First Collection Bureau”, it would seem, is among the favorites of the business, moreover, it has a higher rating level (BBB for PKB versus BBB- for “Garant”). But, apparently, the fears of investors associated with the disgraced shareholder Baring Vostok do not allow the company to enter a lower level of rates.
Another notable case is “Softline“. Just over a year ago, the yields on these securities consistently exceeded 11%. The business (the company specializes in software distribution) has not changed since that time. But the change in investment preferences against the background of the galloping growth of stock quotes of IT companies played into the hands of SoftLine. Now they are among the least profitable among the relatively “long” securities.