Decrease in credit rating. How serious is it? of the last week's crisis brought 2 rating actions in large businesses: Leasing Balti received a reduction of 2 steps, from Aa- to A and the status "under supervision" of Expert RA, Polyplast also received -2 ​​steps, from A to B. B+ from NKR, and the "Rating under review with possible downgrade" forecast. In mid-October, the same thing happened with the Smollett group, being demoted from A to B. in B and uncertain prediction (NKR). A practical question for managing bond portfolios: what do we do with such downgrades? In the past, -2 steps or more in the issuer's rating was a clear exit for us from its bonds. even now Only once rating actions were accompanied by reductions in quotes by 5-10%, now they are 20% or more. Intermediate solutions: Don't rush your sales. Doesn't make up for the initial speed loss, and the rebounds after violent crashes still happen. and increase the requirements for issuers, and reduce the maximum share of each of them. There is an expectation that in the future the price reaction to bad events in the bond market will worsen even more. A downgrade series cannot be an automatic default path. Mowing is now a "B" and is in a state of immersion for the fifth year. However, what happened, objectively speaking, was a rare confluence of official events. This could be attributed to an accident if it weren't for the long 1.5 years of similar encounters in the VDO sector. I did not expect that at VDO the problem not only with the ratings, but most importantly, with the defaults would last so long. I didn't wait, because in textbook economic crises, weak borrowers leave the market en masse within six months or a year (unfortunately, with investors' money). Whoever is stronger, which is the absolute majority, stays. Only for a certain time they pay more than they paid before, against the background of the accumulated fears. The drama in VDO already goes on many times longer than would be enough in normal reality. And it is not known when it will end.

Decrease in credit rating. How serious is it? of the last week's crisis brought 2 rating actions in large businesses: Leasing Balti received a reduction of 2 steps, from Aa- to A and the status "under supervision" of Expert RA, Polyplast also received -2 ​​steps, from A to B. B+ from NKR, and the "Rating under review with possible downgrade" forecast. In mid-October, the same thing happened with the Smollett group, being demoted from A to B. in B and uncertain prediction (NKR). A practical question for managing bond portfolios: what do we do with such downgrades? In the past, -2 steps or more in the issuer's rating was a clear exit for us from its bonds. even now Only once rating actions were accompanied by reductions in quotes by 5-10%, now they are 20% or more. Intermediate solutions: Don't rush your sales. Doesn't make up for the initial speed loss, and the rebounds after violent crashes still happen. and increase the requirements for issuers, and reduce the maximum share of each of them. There is an expectation that in the future the price reaction to bad events in the bond market will worsen even more. A downgrade series cannot be an automatic default path. Mowing is now a "B" and is in a state of immersion for the fifth year. However, what happened, objectively speaking, was a rare confluence of official events. This could be attributed to an accident if it weren't for the long 1.5 years of similar encounters in the VDO sector. I did not expect that at VDO the problem not only with the ratings, but most importantly, with the defaults would last so long. I didn't wait, because in textbook economic crises, weak borrowers leave the market en masse within six months or a year (unfortunately, with investors' money). Whoever is stronger, which is the absolute majority, stays. Only for a certain time they pay more than they paid before, against the background of the accumulated fears. The drama in VDO already goes on many times longer than would be enough in normal reality. And it is not known when it will end.