• English (United Kingdom)
  • Russian (CIS)
Some Aspects of Forming Bond Portfolio of Commercial Banks in the Russian Securities Exchange Market

Author: Ildar R. Baybekov, postgraduate of Finance Dept.

Abstract: The article scrutinizes the issues of portfolio investment in the domestic bond market in relation to commercial banks. The findings of the critical analysis of the applicability of the classical portfolio theory to the Russian securities market witness that it is not appropriate for the Russian conditions and, consequently, the classical procedure of forming investment portfolio cannot be implemented in the domestic bond market.

The paper suggests the criteria for developing bond portfolio of commercial banks. Allowing for these criteria the author examines the process of forming investment portfolio in the Russian bond market at the example of OAO “Moskovskiy industrialniy bank”. The subsequent application of qualitative and quantitative criteria for forming bond portfolio of the bank for September 9, 2013 for 100 million rubles at the cost of funding amounting to 8.95% enabled developing the portfolio of six bond issues.

Keywords: investment portfolio; bond market; issuer; yield; valuation; bank.