Corporate bonds may differ by issuers, terms of issue and circulation, method of redemption, etc. The classification of bonds can be represented as follows.

By way of provision:

a) secured by collateral or mortgages bonds. Backed by the physical assets or securities of the company. Mortgage bonds may be backed by real estate (in which case they are called mortgage bonds). Movable property, such as equipment, can also serve as security.

Mortgage bonds are used when selling real estate on a long-term loan. They guarantee sellers-lenders the satisfaction of their property claims in case of default on the part of buyers-borrowers.

Various stock values ​​can also be used as collateral for mortgage bonds. Bonds secured by securities secured not by property, but by shares and other securities. If the bond issuer is unable to fulfill its obligations, then the pledged securities become the property of the creditors - bond holders.

Mortgage bonds include first mortgages And general mortgages (second, third, etc.) bonds. Primary mortgages are senior bonds, payments on them are made in the first place. The same assets can be pledged several times and ensure the issue of several bond issues. First-mortgage bonds are issued against the first pledge and secured by real physical assets. Therefore, from the perspective of an investor, these bonds are more attractive and less risky, since claims on them are satisfied on a priority basis. As for the second, third and other general mortgage bonds, the claims on them are satisfied after settlements with the holders of the first mortgage bonds. General mortgage bonds, being more risky, bring more income compared to older securities.

b) unsecured (non-mortgage) bonds. These bonds are issued without specifying a particular type of collateral. They are also called direct bonds, since they do not create any additional property claims against the company. Claims of owners of unsecured bonds are satisfied in the general manner simultaneously with the claims of other creditors.

Unsecured bonds are issued by issuers with a positive reputation and a high rating. Despite the fact that the bond loan is not secured, the actual security is the general solvency of the company. Other measures to protect investors may also be envisaged. Often, the terms of the issue contain a provision on a "negative pledge", indicating that for the duration of the bond issue, the issuing company is not entitled to pledge its property to other creditors. Occasionally, uncollateralized bonds are issued by new high-growth companies that do not have enough physical assets to serve as collateral. In this case, bonds are issued for a specific type of income of the issuer or for a specific investment project. If the probability of successful implementation of these projects is high, the company will be able to place bonds without collateral, convincing investors of the full and timely fulfillment of its obligations. Unsecured bonds may also be backed by third party guarantees. The guarantor is most often a more well-known among investors and economically developed company.

In order to protect investors, Belarusian legislation provides for the issuance of corporate bonds secured by collateral. Collateral for corporate bonds can be a pledge of real estate, vehicles, certain types of securities (government securities, except for privatization checks, bonds of the National Bank of the Republic of Belarus, bonds of local executive and administrative bodies, certificates of deposit, bank bonds, mortgages), suretyship, bank guarantee and liability insurance contract for non-performance (improper performance) of the issuer's obligations. Exchange-traded bonds may be issued without collateral, but in this case the issuer must meet certain financial requirements.

Securities, vehicles, real estate that are the subject of pledge for bonds are subject to valuation in accordance with the procedure established by law. The amount of security must be at least 80 percent of the value of the property encumbered with the pledge.

Dependencies from the form of income received can be identified :

a) interest-bearing bonds. At the time of issuing such bonds, the issuer sets the rate of return as a percentage of the face value. In this case, the income can be paid as a payment simultaneously with the redemption of the bond, or it can be distributed over time.

Bonds with periodic income payments are called coupon. The coupon is a cut coupon with the interest rate indicated on it and the date of payment of the coupon yield. When the relevant date arrives, the coupon is cut off (redeemed), and the bondholder is paid the due amount.

coupon bonds Depending on the method of setting the coupon rate, they are divided into:

bonds with a fixed coupon rate. In them, the coupon rate is the same in each coupon and is set at the time of issue;

Bonds with a floating coupon rate. The coupon rate is calculated immediately before the coupon yield is paid and depends on the level of the loan interest. The coupon rate on such bonds is tied to some macroeconomic indicators, which are usually the yield on government securities, the interbank lending rate (LIBOR). In this case, the coupon size is set as the yield of the underlying instrument plus a certain premium - the “spread”. Also, a minimum and maximum limit (corridor) of interest rate fluctuations is often set;

Bonds with a uniformly increasing coupon rate. Most often used in inflationary conditions;

mixed bonds. Part of the term, interest is paid at a fixed rate, and the other part - at a floating rate. They are issued if there is a risk of inflation;

election bonds. The bondholder has the option of receiving interest payments or new bonds. Coupon bonds, unlike ordinary interest-bearing bonds, are designed for a longer circulation period.

Among coupon bonds, the so-called yield bonds. The issuer undertakes to pay interest on them only if there is a profit. Income bonds can be simple And cumulative. For ordinary bonds, income not paid in a timely manner is not accumulated and the company is not obliged to pay it. For cumulative bonds, the unpaid coupon income due to lack of profit is accumulated and paid out subsequently. The accumulation period is usually no more than three years.

b) interest-free (discount) bonds. They are sometimes referred to as zero-coupon bonds because they do not pay interest. These bonds at the initial placement are sold at a price below their face value, and are redeemed at their face value. The income of the holders of these bonds is generated by discount, i.e. the difference between the redemption price and the purchase price. In zero-coupon form, short- and medium-term bonds are usually issued.

Despite the fact that discount and coupon bonds use different methods of generating income, this does not exclude the possibility of the existence of bonds of a mixed type, which provide for periodic coupon payments and at the same time they are placed at a discount. The bondholder in this case receives a regular coupon income, as well as a differentiated income in the form of a discount.

By payment method bonds are:

a) with a one-time payment. In such bonds, the face value is returned at a time in full at the established maturity date;

b) with time-distributed repayment. When redemption of the nominal value of bonds occurs in stages;

c) with consecutive repayment. It is used in the case when lottery drawings are held on a bonded loan. One and the same issue of bonds is redeemed in installments (circulations);

This type of bonds include the so-called serial bonds. They are a package of several series of bonds with different maturities. Each of the bonds in this package is a separately traded security, however, serial bonds are placed and redeemed in series.

d) callable bonds(with call option). The issuer has the opportunity to shorten the maturity of the bond by buying it from the investor before maturity at a nominal or special redemption price. The right of revocation usually comes into play after a certain period of time has elapsed. The difference between the redemption price and the face value is the recall premium. With the passage of time since the issue of the bond, this premium decreases. If the withdrawal is provided for by the terms of the issue, this limits the rights of the investor to some extent. With a decrease in interest rates in the financial market, it will be profitable for the issuer to buy back bonds and place a new issue with a lower coupon. The investor will have the opportunity to receive additional income due to the fall in interest rates and, as a result, the increase in the market price of bonds;

e) bonds with the right of early redemption(with put option). These bonds differ from callable ones in that sufficient redemption occurs at the initiative of the investor. In this case, the owner of the bond is in an advantageous position in relation to the issuer, since with an increase in interest rates, he can use the right of early redemption by selling the bond to the issuer and invest in more profitable securities. Bonds with a put option are typical for countries with high investment risk;

In order to ensure the possibility of redemption, the issuer creates a special redemption (deferred) fund, the funds of which go to the annual repayment of loans.

f) with deferred repayment (prolonged). The redemption of bonds can be extended or postponed for a number of years. At the same time, the right to such an extension in some cases may belong to the issuer, and in some cases to the investor;

g) non-redeemable. They are called rental(perpetual). The issuer of such bonds undertakes only to pay income. A bond, by its economic nature, is a redeemable security. However, in world practice there are cases of issuing bonds, the maturity of which is not defined;

h) convertible bonds. They give the right to their owner at maturity to exchange the existing bonds for ordinary shares or bonds of other issues. The issue of convertible bonds allows the company to quickly implement the issue and interest investors in purchasing their own securities. For the investor, the advantage of convertible bonds is that they simultaneously combine both the properties of bonds and the properties of ordinary shares. On the one hand, the bond ensures the safety of investments, guaranteeing the return of funds and the payment of income, and on the other hand, it creates the possibility of increasing capital, due to the exchange for shares with a growing market value. A variety of convertible bonds are expandable bonds, which are issued for a fixed term, but at the time of maturity can be exchanged for equivalent long-term bonds with a higher interest rate.

In order of appeal bonds can be:

a) freely tradable;

b) with limited circulation. These include the already mentioned callable bonds, since the issuing company at any time after a certain time from the date of issue may terminate the circulation of these bonds;

c) irreversible. In the terms of issuing these bonds, the issuer indicates that they are not circulated on the secondary market or that the state or judicial authorities impose a corresponding ban.

According to the term of circulation, they distinguish:

a) short term

b) medium-term;

c) long term.

The classification of bonds by maturity is very relative, since the time criteria are established by the legislation of the country. However, in world practice, short-term bonds are usually classified as bonds with a maturity of up to 3 years, medium-term - from 3 to 5 years, long-term - from 5 years or more.

By type of currency there are:

a) bonds in which the face value is expressed in national currency the country where the issuer is located and the income is paid in the same currency;

b) bonds in foreign currency. These include international bonds and Eurobonds placed outside the issuer's country. However, bonds denominated in foreign currency can also be placed on the domestic market among domestic investors.

c) two-currency bonds. These bonds provide for the payment of coupons in one currency, and the redemption of the face value in another. Dual-currency bonds, like Eurobonds, are used to place securities on the international financial market.

Depending on the degree of risk, there are:

a) bonds worthy of investment. Debt obligations of large and well-established companies with an impeccable reputation. The most high-quality corporate securities are those rated by the largest rating agencies, such as S&P and Moody's (according to the accepted rating scale not lower than BBB or BBB). The reliability of bonds can also be provided by various types of collateral or third party guarantees.

b) speculative bonds. Low-rated high-risk bonds or unsecured bonds.

Greetings, dear investors. Earlier, in an article on the definition, we already got acquainted with what a bond is, what types of bonds are traded on the Russian stock market, and even examined in more detail one of the most popular types of this type of securities, namely - (OFZ) and the subtleties of investing in them.

And today we will look at another extremely popular group of bonds, beloved by investors around the world for their profitability and reliability. We are talking about corporate bonds.

So, a corporate bond is a security issued by an issuing company (legal entity) with the aim of inflowing capital into the production process and financing its production activities.

As a rule, corporate bonds are a long-term investment instrument that differs from stocks by a much lower level of volatility and, as a result, a lower degree of risk.

Only the largest companies in the country have the right (and the opportunity) to issue corporate bonds, which, in case of emergency, can immediately pay them in full.

They are intended for cautious investors who seek to minimize the risks arising from investing capital and are aimed at obtaining regular coupon income, while protecting investment capital from the effects of inflation.

I think, dear reader, that you know one of the fundamental laws of the investment market, which says that the more risky an asset, the theoretically more profit it can bring. And vice versa - the safer the asset, the less percentage of profit on it the investor receives.

When it comes to corporate bonds, we can say that they are a kind of golden mean between the concepts of "yield" and "riskness". I'll explain why.

Bonds (all bonds) are much less volatile than, for example, stocks (you can read why this is so in the article dedicated to them, which is located in the main menu of the site). And, if we take the specific classification of bonds, which, as we remember, are divided into state, municipal and corporate, then it is obvious that the latter will be the most profitable of them.

Why is that? Yes, because it is almost impossible for a state that has issued a bond to show growth of 20-25% per year (we will not take into account the Chinese economic miracle and others like it), but a company, especially a large one, is quite capable of doing this. And growth of 20% per year, with the corresponding payment of interest on corporate bonds, is no surprise here.

So it turns out that corporate bonds have a low level of risk, due to their relationship to the corresponding group of securities, and a fairly decent percentage of profitability, which may well compete with profits from stocks and futures.

In the Russian Federation, corporate bonds are quite widespread. Bonds of Russian companies appeared on the stock exchanges in the early 90s of the last century, but, naturally, at that time they could not yet cooperate with the securities of foreign companies.

Now this situation has changed and looks much more rosy for domestic firms and investors. Today in Russia there are enough companies that can compete with the world's leading corporations in terms of scale of activity, profit volume and financial capabilities. And by investing in them, the investor can count on a good profit, while supporting the domestic producer.

Currently, Russian joint-stock companies issue both ruble and foreign currency bonds available for purchase on the domestic and foreign stock markets. Moreover, the offer of corporate bonds of Russian issuers is quite large, they are available in almost every area of ​​production and non-production activities.

Here, for example, are the corporate bonds of a representative, the Magnit trading network (MGNT):

Or, if we take the sphere of production of natural gas and oil products, then as an example we can cite the largest Russian corporation Gazprom and its bonds:

There are many more examples, because, as I said, there are plenty of Russian corporate bonds on the Moscow Exchange alone. Moreover, both among blue chips (LUKOIL, Sberbank, Norilsk Nickel, etc.), and among smaller companies.

And, if you wish, you can assemble an excellent investment portfolio with low risks and a decent level of profit from them.

Where to buy corporate bonds

For example, Zerich, the largest Russian stock broker, has a well-functioning mechanism for working with corporate bonds. Here, for the convenience of investors, they are separated into a separate subgroup and are available for work to all clients of the company.

In addition to them, by the way, there are other types of bonds, such as OFZ and Eurobonds. So, if you are looking for a good broker, then Zerich is quite suitable for his role.

In principle, this is all that concerns corporate bonds. If you have any questions - write them in the comments. See you again.

Sincerely, Nikita Mikhailov

Corporate bonds continue to be an attractive investment tool due to high yields with relatively low risks. For business entities, they remain a cheap way of borrowing. The issue of corporate bonds allows you to use borrowed funds on terms that are more attractive than bank loans.

What are corporate bonds

Corporate bonds are a financial instrument in the form of securities that allow you to raise borrowed funds on a fee basis. This type of loan, in contrast to the issue of shares, allows the owners of the enterprise to retain control over the adoption of management decisions. Short-term commercial bonds allow you to raise funds to replenish working capital. Medium- and long-term bonds are used to implement large-scale development projects. This includes equipment upgrades and other investments with a long payback period.

Bonds issued by corporations are debt securities that confirm two rights:

• for the owner to receive the nominal value from the issuer within the established period;
• for remuneration in the form of interest or other property values.

In other words, buyers of bonds receive a stable income during the life of the securities. At the end of the circulation period, the corporation redeems the bonds from the holders at face value.

Corporate bonds, the yield on which is higher than that of government bonds, belong to the more profitable and risky segment of securities.

Unlike a loan, debt obligations between the lender and the borrower do not require a guarantee or collateral.

Interest on bonds is paid before the distribution of profits among shareholders. In the event of a company going bankrupt, debts on bonds take precedence over stocks.

The disadvantage for investors lies in the lower profitability and the inability to influence the management activities of the company.

Corporate bonds are divided into the following types:

• urgent and revocable;
• nominal and bearer;
• regular and targeted;
• with distributed and one-time repayment;
• secured and unsecured.

Investors receive different types of income from holding bonds: fixed and floating coupon income, discount income through buying at a discount and redemption at par.

Issuing corporate bonds: benefits for the issuer and investor

The issue of bonds of the company ensures its entry into the capital market without changing the structure and redistributing the rights of ownership and management of the company.

Bonds are especially attractive for companies that are undervalued by the stock market. The Russian corporate bond market allows such enterprises to consolidate large assets without diluting the share of existing shareholders. The issue of securities provides an opportunity to fulfill current tasks and long-term plans. Bonds allow you to cheaply refinance the issuer's debts and easily find money to launch new projects that are not related to the company's core business.

Investors prefer corporate bonds for the following reasons:

• a stable percentage of income, which can only fall if the company goes bankrupt;
• transparent information on the asset, facilitating an accurate assessment of the risk of default;
• greater reliability of bonds in comparison with shares;
• the possibility of converting into shares and selling on the secondary market;
• benefit from preferential taxation;
• yield exceeding the deposit rate (consolidated income from coupon payments, discount and speculative transactions).

Disadvantages of corporate bonds

The obvious advantages of corporate bonds are set off by a number of disadvantages:

• Being a higher priority obligation, bonds provide high reliability. But less risky instruments in the financial market are characterized by low profitability. Therefore, this type of securities cannot provide high returns comparable to investments in shares.
• The inability to participate in the management of the company greatly limits the tools of large investors seeking to expand the scope of control.
• The high reliability of bonds reduces the volatility index. It makes sense to buy bonds based on long-term price growth. However, they cannot act as a speculative instrument.

Examples of bonds of Russia and foreign countries

Bonds of Russian companies over the past year have managed to grow in price and lose yield. The coupon income graph is steadily moving down along with the deposit rates of banks. Plans to reduce the discount rate, announced by the central bank, will also affect corporate bonds in 2018.

This is quite a natural phenomenon: the growth of the corporate bond index is invariably associated with a drop in yields on them. The growth of speculative income on bonds leads to a decrease in the average interest rate in the market.

However, even the manipulations of the Central Bank could not dislodge corporate bonds from the leading position among fixed income instruments. They are confidently ahead of bank deposits in this respect.

We bring to your attention the most profitable corporate bonds on the Moscow Exchange:

• short-term bonds of Alfa-Bank and pharmacy chain 36.6;
• long-term bonds of the Agency for Housing and Mortgage Lending and Binbank;
• Eurobonds of Tinkoff, Renaissance Credit and VTB banks.

The yield on corporate bonds is 9.5% or more, which is significantly higher than the deposit rates offered by Sberbank and other leading banking institutions. Given the similarity in terms of the reliability of deposits and bonds, investments in bonds look more attractive.

Russian investors can invest in foreign bonds through investment funds or directly. To minimize risks, you should focus on the credit ratings of Moody's and other reputable rating agencies.

Where are bond lists published?

Investors are especially interested in corporate bonds issued in 2018, a list of which is presented on specialized Internet resources:

Here you will find up-to-date information about the issue of new securities and the state of affairs in the secondary market. Indicators of the issue volume, interest payment terms, exchange rate dynamics and turnover in the secondary market will help you navigate the market and choose the best investment offer.

According to our estimates, taking into account all the adjustments, 171 bonds were included in the list of “privileged” bonds. Calculations were made on February 6, 2018.

* The column "Date of maturity / offer" indicates the nearest of these two dates

What is the issue date?

Throughout the past year, heated debates have not subsided over what is meant by the word "emission". According to the legislation, the state registration of the issue is considered the start date of the issue. For this reason, a significant list of securities that were placed after January 1, 2017, and whose state registration was earlier than this date, was under question.

According to the explanation of the Ministry of Finance, which was requested by the Moscow Exchange, “bonds issued starting from 01/01/17 are understood to be bonds, the placement date of which falls on this period”.

This means that bonds placed after this date, regardless of the date of state registration, are exempt from coupon income tax.

What are the restrictions for issuers?

The issuer of the bonds must be a Russian organization. The papers themselves must be nominated in rubles.

Are there any restrictions on the size of the coupon?

According to the adopted law, the coupon value should not exceed the key rate increased by 5%. Currently, the key rate is 7.75%, that is, coupon income exceeding 12.75% per annum will be taxed. At the next meeting of the Central Bank, most experts expect a rate cut of 0.25%, in the event of such a scenario, the bar will drop to 12.5%.

If the coupon exceeds the level specified in the law, the tax will be levied only on income that exceeds the threshold level. The tax rate will be 35% instead of the usual 13% personal income tax. Let's look at an example:

Let's say the coupon yield on a bond is set at 15% per annum. This value exceeds the threshold level by 2.25%. This means that “clean” you will be paid 12.75%, and a tax of 35% will be taken from 2.25%. As a result, "on hand" you will receive 14.21%. In fact, the amount of tax on the entire coupon in this example will be 5.3%, in any case, 13% of personal income tax is more profitable. This value directly depends on how much the coupon exceeds the set threshold..

Is there a tax on income from the increase in the market value of paper?

Only income received as a result of the excess of the paid face value of the bond, at the time of redemption, over the market value at the time of purchase, is not taxed. Here again will help us example:

Let's say the bond was purchased at a discount of 95% of the face value. In this case, at the time of redemption at face value, an income of 5% will be received, which is not taxed.

However, if in the above example you decide to sell the paper before the maturity date for 99% of par, 100% of par, or any other amount in excess of the purchase price, tax will be withheld on the 13% benefit received.

What is meant by circulating paper?

This point is probably the most useless for investors, but let's explain it for the sake of order. According to the interpretation of the Moscow Exchange, which we have no reason not to trust, a tradable security is a bond for which it is possible to calculate at least one weighted average market price for the last 3 months.

What papers do not fall under this criterion? Obviously those that are not traded. Among the many issues, there are “non-market” ones, which are initially 100% placed among a number of interested parties and held by them until maturity.

For simplicity, we also did not include in the list a number of securities for which there was only one weighted average price for the entire period of circulation. However, since they were released recently (in the range of 3 months), they should formally be included in the list according to the criteria.

The published list of bonds was prepared by BCS Express experts and is based on our understanding of the wording of the law. We do not guarantee that this list includes all bonds, the coupon income of which is not subject to tax.

Gaivoronsky Sergey

Knowing the intricacies of modern financial markets, and what affects them, one can understand the essence of the development of the modern economy. Disclosing the issue of the essence of corporate bonds, what processes they regulate, their types and purpose, helps to learn to distinguish true values ​​from imaginary ones. Especially when it comes to the Russian stock markets and the real opportunities they can provide.

What are corporate bonds and their issue

To attract capital and investment ( video "Investing in bonds" at the end of the article ↓ ) in business for the purpose of development, restructuring, introduction of new technologies, enterprises and corporations use the issue - securities, which secure the owner the right to receive the nominal value of this paper and all the stipulated payments on it.

The main interest of an investor in acquiring corporate bonds issued by enterprises is to maximize profits. It depends on their origin, reliability, accuracy and craftsmanship from the issuer.

• The international rating agency Moody`s in 2017 compares the volatility of the Russian securities market with the Argentine market.
• In 1999, Gazprom was the first to issue bonds at the federal level, followed by oil companies and TNK.
• According to experts, in 2017 in Russia, debt securities of Transneft, MTS and STLC can be singled out for successful investments. The coupon yield of these bond issues is 9.25%, 9% and 11% per annum, respectively.
• The young corporate bond market in Russia has its own trends of positive development. The influence of the state has a beneficial and balanced effect on him. Undoubtedly positive prospects will attract more and more corporate and private investors to this niche of Russian stock markets.

Corporate bonds are widespread all over the world, they are active components of the global stock markets, it is on them that they earn millions of dollars with the right and thoughtful investments.

Companies, having issued debt obligations, in turn receive financial injections, which they can use until they are repaid.

The issuance of bonds to attract investors is called an issue. And the enterprise that organized this process is the issuer. To make a decision on the issue of corporate bonds, the main governing body of the enterprise makes a conclusion based on the research work of economists, financiers, analysts and makes a decision on this event. Taking into account the norms of the legislation, the state registration of the issue is carried out, and then the process itself takes place directly. It is mandatory to form and submit a report to the Federal Financial Markets Service on the issue of corporate bonds.

What are bonds

Bonds can be:

1. secured. These are the types of securities that are backed by assets (real estate, other fixed assets of the enterprise, land, stocks of raw materials and materials, etc.); these objects are guarantors for these securities, since even in the event of bankruptcy of the issuing enterprise, they will be sold to pay for corporate bonds;
2. Unsecured. In cases where the issuer does not have any significant assets; in this option, the reputational indicators of the enterprise play a role, the liquidity of their securities depends on the profitability of the company, its economic activity.

By the form of income calculation, bond issues are possible:

1. interest. That is, the accrual of a coupon (profit as a percentage of the face value) is carried out constantly, this figure can be negotiated in advance when issuing, or be floating - in this case it depends on many economic factors, including;
2. Interest-free. They are also called discount, because they are sold at a price below face value, the return occurs at least at the face value, and in most cases, even higher; It is this factor that is laid down in obtaining the maximum profit.

According to the period and form of existence, these papers are divided into:

• Urgent. With a set maturity date; they, in turn, can be:

— short-term (up to a year);

– medium-term (from one to 5 years);

- long-term (a period of more than 5 years).

• Perpetual. Although they are called perpetual, they necessarily have a maturity date that is not set at the time of issue; in any case, at the initiative of either the issuer itself or at the request of the investor, early repayment of debt obligations can be made.

Depending on who will own the bonds and who specifically will repay them, they are recorded as:

• Nominal. Only the registered owner can use them;
• To the bearer. The identity of the owner is not registered, he can sell, donate or inherit papers belonging to him.

The main types of these obligations can have many branches and nuances, depending on the economic situation in the country as a whole, and on the position of the issuing company.

The modern market of corporate bonds in Russia and features of taxation

In Russia, the activity of corporate bonds began to develop only in 1999, when the economic development of the country was gaining momentum, moving to a qualitatively new level, and bank lending could not meet all the requirements of growing enterprises.

In those years, no one really understood the essence of bonds, it was difficult to find issuers and. But the realities of the time and the experience of the developed countries of the world showed that the way of issuing corporate bonds is an effective and working mechanism, and it must be implemented in Russia, whose entrepreneurs were eager for decisive and positive steps for the profitable civilized development of the economy.

Expert opinion

Roman Nasonov
Lead Analyst, PJSC Promsvyazbank

In the context of a steady trend towards lower rates on bank deposits, alternative investment options are now becoming increasingly important for investors.

Due to upcoming changes in legislation, we recommend paying attention to such an investment instrument as corporate bonds. They, like deposits, bring interest income (in the form of coupons), but its value is usually higher than deposit rates. And if earlier this was partly offset by the need to pay a 13% tax on coupon income, then from January 1, 2018, amendments to laws will come into force that exempt individuals from paying it.

It is important that this applies only to bonds issued since January 1, 2017, so we recommend paying attention to the issues placed this year. Among them are such papers as STLC 6-year bonds series 001P-04, 4-year OKEY bonds series 001P-01, 3-year bonds Detsky Mir series BO-04. The yield of these issues to offer/maturity is in the region of 9.3-9.7%, while the maximum interest rate on deposits in the top 10 banks, according to the Central Bank at the end of June, is less than 7.5%.

The advantage of bonds over deposits is not only the ability to fix a higher yield for a sufficiently long period, but also the opportunity to receive additional profit from the growth of their market value in the face of lower interest rates.

Let's illustrate this with an example. Suppose an investor opens a brokerage account and buys 6-year STLC 001R-04 series bonds at the current market price of 102% of the face value (1000 rubles), with an investment horizon of 1 year. According to our forecasts, the key rate of the Central Bank of the Russian Federation will decrease by 100 bp in a year. to 8%, due to which the yield on STLC 001R-04 bonds will drop from the current 9.7% to about 9.1%, which means they can be sold already at 104% of the face value. Thus, if this scenario is implemented, the investor's earnings will be more than 11% per annum.

An additional benefit from investing in corporate bonds can be obtained by opening an individual investment account, which gives the right to receive a 13% tax deduction. The limitations of this option are the limit on the amount of the deduction of 52 thousand rubles. and a minimum investment period of 3 years. As for the investment amounts, about 10 million rubles can be invested in one liquid issue without any problems. If you wish, you can invest more - 50-100 million rubles, but in this case, getting rid of all bonds to maturity if such a need arises will already be problematic.

We also recommend that investors with amounts of more than $100,000 pay attention to corporate Eurobonds. Dollar issues of the largest Russian companies maturing in 2021-2022 now offer a yield of 3.5 to 5% per annum, which is much more than dollar rates in Russian banks. The Eurobond market is over-the-counter, so individuals do not place orders on it on their own, but use the services of personal brokers.

It is important to understand that the purchase of corporate bonds is associated with the risk of default by the issuer and for those whose savings do not exceed 1.4 million rubles guaranteed by the state. for bank deposits, this is a significant drawback.

In addition, unfavorable market developments could lead to falling bond prices and reduced bids, leaving some of the flexibility for investors to choose how long they want to invest. However, corporate bonds now provide a good opportunity to earn compared to bank deposits, and this tool is definitely worth paying attention to.

Currently, this financial market in Russia is negatively affected by:

• instability of the domestic market (another crisis of 2014-2017);
• sanctions imposed by European countries and America in 2014;
• decline;
• low consumer ability, inflation;
• low investment activity.

Despite these factors, there is a constant increase in the share of Russian securities on the market. However, according to the reports of international rating agencies, this market still falls short of the global ones, and besides, it is too volatile.

Attracting private investors to the stock market can be facilitated by the reduction in rates on bank deposits, which has been observed in Russia in recent years.

According to world experts, several more factors will contribute to positive dynamics in this direction:

1. The decision of the State Duma of the Russian Federation, adopted in the first reading on February 15, 2017, not to impose personal income tax on ruble bonds issued from January 1, 2017 (the exception will be cases when the coupon income on them exceeds the refinancing rate);
2. Insurance of individual investment accounts, adopted by the State Duma of the Russian Federation on June 21, 2017;
3. Getting tax deductions on individual investment accounts.

These measures have justified themselves, the number of individual investment accounts is growing, and, consequently, the volume of investments in the securities of Russian enterprises is increasing.