Other inefficiencies are unique to bond markets: commonly used benchmarks like the Barclays Aggregate only
include investment grade securities, and as a result some investors add exposure to sectors such as high yield or emerging market debt to help boost yield.
The insurance company loans you money that was earmarked for policy owner loans, investing in bonds, investing in real estate, or investing in
other investment grade securities.
At least 65 % of the fund's net assets must be, and up to 100 % may be, invested
in investment grade securities; securities issued or guaranteed by the U.S. government, its agencies or instrumentalities; commercial paper rated Prime by Moody's or A - or higher by S&P; and cash and cash equivalents.
Although the bond market is also volatile, lower - quality debt securities including leveraged loans generally offer higher yields compared to
investment grade securities, but also involve greater risk of default or price changes.
High yield bonds involve greater risks of default or downgrade and are more volatile than
investment grade securities, due to the speculative nature of their investments.
High Yield bonds involved greater risk of default or downgrade and are more volatile than
investment grade securities, due to the speculative nature of their investments.
High yield bonds are more volatile than
investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.
Although the bond market is also volatile, lower - quality debt securities including leveraged loans generally offer higher yields compared to
investment grade securities, but also involve greater risk of default or price changes.
Non-investment grade bonds involve greater risk of default and bankruptcy than
investment grade securities.
High yield bonds are more volatile than
investment grade securities, and they involve a greater risks of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.
As such, securities rated below investment grade generally entail greater credit, market, issuer and liquidity risk than
investment grade securities.