The Moscow Stock Exchange began trading in Russia’s first exchange-traded fund for bonds with a variable coupon. The coupon size is linked to the rate, which is close to the key rate. The share of government and corporate bonds in the fund’s portfolio is at least 80%, the rest are money market instruments.
Trading of an exchange-traded mutual fund for floating bonds (bonds with a variable coupon) has begun on the Moscow Stock Exchange. This was reported by the press service of the trading platform.
The floating fund trades under the symbol SBFR. This is the first fund of this type in Russia, says the Moscow Stock Exchange.
The proportion of government and corporate bonds in the fund’s portfolio is at least 80%. The remaining 20% are money market instruments, such as reverse repurchase agreements. One share of the fund costs 10 rubles.
The coupon size is linked to the RUONIA index, that is, the weighted average rate at which organizations obtain unsecured overnight loans. The RUONIA exchange rate is close to the official interest rate of the Central Bank, which currently stands at 16%.
Author:
Kirill Bilyk
Source: RB
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