OFZ and corporate bonds: what the premium pays for
beginner
Automated material · TradeAlmanac editorial deskDraft prepared by a language model from our stored data; not reviewed by an editor.
OFZ (Russian federal loan bonds) are regarded as the most reliable rouble instrument: the state pays. A corporate bond of the same maturity almost always yields more. The difference is not a gift but the price of risk.
What the premium is made of
Credit risk: the issuer may not pay. Liquidity: a corporate bond is harder to sell quickly and its Spread is wider. Structural features: Put date (offer), amortisation, covenants.
How to assess the issuer
Look at what you would look at when buying its shares: leverage, cash flow, the durability of revenue.
1,67
-141 400 000 000
The difference is that a shareholder needs growth while a creditor needs only the ability to pay.
What reliability does not give
Even government bonds offer no protection from price risk. When rates rise a long government bond gets cheaper just like any other long bond. Credit reliability and price stability are different things.
Related instruments
Draft prepared by a language model from our stored data; not reviewed by an editor.
Model: claude-opus-5
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