Bank of Russia expands pool of bonds accessible to non-qualified investors
Now, non-qualified investors are allowed to purchase corporate bonds with an A+ or higher credit rating without testing (except for bonds secured by monetary claims, including mortgage bonds). Such instruments are highly liquid and are characterised by an insignificant default probability of no more than 1.3%.
Therefore, investors will be sufficiently protected from credit risk. This will make the debt market more attractive to retail investors and help them form a more balanced investment portfolio.
Previously, the bonds accessible to non-qualified investors without testing included only federal government bonds, bonds of Russian constituent territories (regardless of the credit rating), and other fixed income debt securities with a rating of at least AAA.