The search for yield has put a spotlight on the higher yielding credits like senior loans and high yield bonds but what
about investment grade credits?
Not exact matches
Long Treasuries returned
about 10 % in 2008, while nearly all other
investment grade credit posted losses.
We can invest in just
about any part of the global bond market but most of it is in
credit so we subdivide the market into corporate
credit and below
investment grade corporate
credit, emerging market debt.
When we talk
about credit, we refer to the likes of
investment grade bonds (issued by more creditworthy companies), high yield bonds (issued by less creditworthy companies, but offering more return and income in exchange), and emerging market bonds.
When we do, we find a leverage ratio (Debt / EBITDA) that's
about three times smaller, a debt to capital ratio that's less than half, and a very high interest coverage ratio, which helps to secure GD a very strong
investment -
grade credit rating.
Learn
about the top five mutual funds that invest in corporate bonds that have
investment grade quality and speculative
credit ratings.
The rating agency, which was founded in 1971,
grades about 55,000 institutions and
investments including banks,
credit union, insurance companies, stocks, ETFs and mutual funds.