The table to the right offers some illustration of how many different issuers may be required to help achieve diversification
at different credit ratings.
In order to be broadly diversified, the rungs each contain a range of bonds and FDIC - insured CDs at
different credit rating levels, but all of them are at least investment grade.
Spouses With
Different Credit Ratings Looking For 1st Home... my husband and I want to buy a house as soon as possible... he just received a chapter 7 bankruptcy discharge, so his credit is poor... my credit, however, was excellent the last time I checked...
When you issue millions (or billions) worth of bonds the difference in interest payments can be substantial between companies
with different credit ratings.
If a corporation or government has multiple bond issues, they will often have
different credit ratings.
Alison Griffiths, author of Count on Yourself: Take Charge of Your Money, encountered
a different credit rating - related problem with a Home Depot card she signed up for when she was doing renovations.
In this case, the slight price variances may be attributable to
different credit ratings and other factors.
Similarly, you can diversify the bond portion of your portfolio by including a mix of bonds with
different credit ratings and durations.
Mortgage Library: Ask a Mortgage Related Question: Answers: Spouses With Different Credit Ratings