Gazprom bonds are a defensive asset

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-02 13:48

In the context of the crisis in the economy, people have the problem of saving their money. There are several options: investing in real estate, buying foreign currency, replenishing stocks of strategic food, placing on bank deposits.

In addition to the above, there is another possibility - the purchase of IOUs of reliable companies. Long-term securities provide an opportunity to receive a small but regular income annually.

Gazprom bonds are one of these securities.

Issuer rating

PJSC Gazprom is a company in the energy sector. Types of production activities:

• mineral exploration;
• handling oil and gas resources;
• refining and selling hydrocarbon products;
• production and sale of electrical and thermal energy.

PJSC "Gazprom" is the leader in the top three world public commodity companies according to Forbes magazine.

The government of the Russian Federation controls the activities of PJSC Gazprom.

The company's reliability rating and forecast for 2017 are as follows:

• Dagong: AAA;stable;
• S&P: BB+; positive;
• Fitch: BBB-; stable;
• Moody`s: Ba1; stable.

Alternative to deposit

Deposit is more familiar to the consumer. Let's compare the proposed type of investment with a deposit.

Entering a trade. A deposit in some banks can be opened from one thousand rubles. Typically, debt securities are issued with a par value of 1,000 rubles. But they are traded on the exchange most often below par with a lot of one paper. That is, you can invest less than a thousand rubles.

On deposits, the client receives a profit in the form of an announced percentage. The yield of a Gazprom bond is the sum of the coupon payments plus the difference between the face value and the purchase price. Suppose a client bought one paper at a price of 95 percent of the face value, that is, for 950 rubles. Then, upon redemption, he will receive a profit of 50 Russian rubles. This is a plus for coupon payments.

As the deposit can be closed at the request of the client, so the bond can be sold on any day. But in case of early termination of the deposit agreement, the depositor usually loses interest. And when selling a bond, he gets a coupon profit for the time he owns the security.

It is often necessary to visit a bank for deposit transactions. The client can perform all actions with bonds independently by concluding an agreement with a broker and installing a trading program.

Ruble IOUs: price, chart, yield

The face value of Gazprom's ruble bonds is 1,000 rubles.

There are several ruble coins in circulationissues. For example, series BO-19 and BO-20 with a maturity date of 2043. The yield on them is determined by the issuer based on the percentage of the coupon period K_tp:

K_{tp=(CPI - 100)% + 1%, where CPI is the consumer price index.}

Coupon kush is directly related to the current inflation index. During the existence of the BO-19 series, the coupon percentage varied from 7.3 percent to 17.4 percent. Recently, the yield is 8.3%.

Currency receipts: value and demand

Eurobonds are priced in euros or dollars.

For operations with Gazprom's European bonds, you need:

1. Conclude a brokerage agreement with a reliable company.
2. Make the first deposit to the brokerage account.
3. Install the trading program. The broker will recommend convenient free software.
4. Think over the timing of the investment and formulate for yourself the purpose of the acquisition. Select one or more eligible Eurobonds.
5. Make a purchase.
6. Control price and quote changes.

The yield of one European bond of Gazprom lies in the range of 2.75-9.25%. The total return on ownership is the sum of the coupon payments and the difference between the purchase and sale prices. An income of 12% is achievable when working with brokerage leverage.

An additional profit on redemption may arise from the exchange rate difference at the time of purchase and at the end of ownership.

The owner can apply in the program at any timean order to buy and sell tradable IOUs. For example, if the price has risen to 105 percent of the face value of $1,000. Then, when selling, the owner receives an additional $50.

How to buy a piece of Gazprom

There are many ways to buy securities.

The first option is to install a trading program and work through a broker. Be careful. Not all issues are available for trading through the program. For some assets, you need to work directly with a broker by phone.

The second option is to buy shares of open mutual funds. Two funds work with both ruble and foreign currency assets.

PIF "Gazprom - Bonds Plus" accepts a minimum investment of 1 thousand Russian rubles.

PIF "Gazprom - Foreign Currency Bonds" starts from 5 thousand rubles.

The register of issues, taking into account the valuable debt receipts of the organizations "Gazprombank" and "Gazpromneft", contains almost 60 items. There are papers with a circulation period up to 2034. There are issues with an expiration date in 2018. The choice of the duration of investing free cash is yours.