Investment -
grade bonds typically make up the largest portion of a fixed - income portfolio.
Not exact matches
These funds are
typically composed of investment
grade bonds issued by governments and corporations or secured by assets such as home mortgages.
Typically, the market for high yield
bonds is less liquid than the market for investment
grade or government
bonds.
A
bond ladder involves buying a series of individual securities (
typically treasury
bonds, municipal
bonds, investment
grade corporate
bonds or even CD's) across a variety of maturity dates.
Investment
grade corporate
bonds typically offer better return potential than Treasury
bonds, and investment
grade debt allows investors to pursue those returns without adding as much risk as high yield
bonds.
To mitigate the risk of the company going bankrupt, risk - averse investors will
typically purchase high credit - quality investment
grade bonds with AAA or AA ratings.
High yield
bonds typically offer better return potential than Treasurys or investment
grade bonds as a way of compensating investors for taking on greater risks.
High - yield
bonds (sometimes referred to as junk
bonds)
typically offer above - market coupon rates and yields because their issuers have credit ratings that are below investment
grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.
The American Century High Income Fund has
typically invested at least 80 % of net assets in a portfolio of high yield
bonds generally rated below investment
grade by Moody's Investors Services, Standard & Poor's (S&P) Rating Services or Fitch.
Corporate
bonds will
typically be held in a ladder of corporate
bond ETFs, each of which is designed to correspond to the performance of investment -
grade corporate
bond indices.
Typically, only
bonds issued with a «Baa» rating or above are considered «investment
grade», or appropriate for more conservative accounts and investors.
The holdings of emerging market
bond funds
typically range from relatively low risk BB +
bonds (one notch lower than investment
grade) to high - risk C issues.
In recessions, high - yield
bonds typically lose more principal value than investment -
grade bonds.