Yield of the RUS 28 bond for today: quotes XS0088543193 + NKD and reviews

Eurobond Russia-28 is one of two Eurobonds of the Ministry of Finance with a lot size accessible to a “mere mortal” investor. The second available Eurobond is Russia-30.

Eurobond of the Ministry of Finance RUS-28 (Russia-28) is traded on the Moscow Exchange.

Main parameters of Russia-28:

• The currency of paper and coupon is US dollar!
• Maturity date 06/24/2028
• The nominal value of the lot is $1,000.
• The market value of the lot (at the time of writing) is 168.9% or $1690
• Coupon frequency: 2 times a year (June and December)

You can view the information here

Bond parameters

Corporate bonds

State and quasi-state companies

The table below includes bonds of state-owned companies (i.e. those in which the state owns more than 50% of the shares) and quasi-state (in the capital of which the state participates indirectly - through parent companies or organizations).

And here is another interesting article: VTB overnight bonds - what are they and is it worth investing in them?

I also classified Gazprom as a state-owned company (although in fact the company is private), since it is one of the natural monopolies and is in fact directly controlled by the state (through Miller).

As elsewhere, the sample contains bonds without an offer, without amortization, and with a constant coupon.

The yield of such bonds is higher than that of OFZ: from 5.08% to 6.64%.

Moscow Exchange share bonds

This sample contains bonds of companies that are listed on the Moscow Exchange, without reference to any echelon, as well as “subsidiaries” of such companies (for example, Segezha is a subsidiary of AFK Sistema, which is traded on the exchange).

The level of risk, in my opinion, for such bonds is slightly higher than for bonds of state-owned companies, but in general such securities are quite reliable. The probability of default by MTS, Magnit or MRSK CPU, in my opinion, is very low. But at the same time, such securities have a “tasty” yield to maturity – from 4.94% to 6.49%.

So, the most profitable corporate bonds in 2021 are the following:

OTC company bonds

Next on the list of the most profitable bonds of 2021 are bonds of over-the-counter companies with a fairly high credit rating. These are bonds of companies such as Uralkali, Eurochem, Megafon, Rosbank, etc.

The average yield of such bonds is from 4.32% to 6.52%. They all have different credit quality, so you should be more careful when choosing the right ones.

And here’s another interesting article: Review of the VBTH mutual fund: how to invest in the American debt market

VDO

The list of the most profitable bonds of 2021 is completed by VDO (high-yield bonds). Here are the highest coupons, low bond prices and high risks. Accordingly, the yield to maturity is also maximum – from 8% to 13.41%. The credit quality of issuers is also very different, so you need to analyze VDOs for inclusion in your portfolio especially carefully. If you want to become a pro in this matter, take a training course.

The list of the highest-yield bonds for 2021, as elsewhere in the review, includes papers without amortization, offers and with constant income. Therefore, the profitability of such an investment can be calculated literally down to the penny.

I hope that the information was useful to you, and you will be able to add the most profitable bonds to your investment portfolio with the level of risk that suits you and the credit quality of the issuer. Write what you think about bonds in 2021, good luck, and may the money be with you!

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Bond quotes

Taxes

• From 01/01/2021, coupon income on this security is subject to personal income tax. The broker will withhold tax from this coupon. This tax can be removed by purchasing this paper on an IIS type B.
• Eurobonds (including this paper) can be purchased using an IIS type A, which will allow you to receive an additional 13% for every 400 thousand contributed per year in the form of a tax deduction.
• Currency revaluation of this security is not subject to tax.
• Exchange rate difference (the amount of growth in the body of a given security, i.e. the difference between the purchase price and the sale price at the exchange rate on the date of sale) is subject to personal income tax. This rule works both for tax residents of the Russian Federation and for non-residents.

Pros and cons of the release

The security is traded in dollars in Russia, which is very convenient for owners of American currency: there is no need to convert their finances from one currency unit to another and lose on the difference in rates.

RUS 28 on the Moscow Exchange has a unique trading code - xs0088543193. It is by this that this asset can be unmistakably identified.

The downside of the issue is the initial lot size – $1,000. This cuts off small investors, preventing them from diversifying their securities portfolio with foreign currency bonds. Another disadvantage is the large coupon income of 12.93% per annum.

Let me explain why: this leads to a significant increase in the price of the asset. According to the results of MICEX trading as of October 30, 2019, RUS 28 is traded at 170.69% of the nominal value, or $1,706.9.

There is no contradiction in yield here: traders and investors are ready to buy this security at a significantly higher price than its face value, thereby reducing the yield to maturity to 2.94%.

And this final value still remains high - not a single Russian bank will provide a return of at least 1.5–2% in foreign currency.

To the point

This bond is an excellent and conservative option for (including) a novice investor, because it has maximum reliability and a dollar coupon - passive income that can be transferred to a card and withdrawn from an ATM. If

• The stock market and exchanges are a dark forest for you
• You don't know how to choose a broker
• You are afraid of making mistakes and losing your invested money
• You don't know which securities to buy and which ones not to buy!
• Would you like to invest in the Russia-28 dollar Eurobond?
• You don’t know how to reduce taxes and report to the tax authorities
• You want to invest in other foreign exchange securities, etc. and so on.

Come to my Investment Training, where in 20 hours of training (14 lessons), you will receive all the necessary, practical knowledge to choose a broker, make your first (safe) investment and determine your investment strategy for several years to come!