Fixed income investors know credit quality matters, and that’s particularly true with corporate bonds. Corporate debt with investment-grade ratings feature lower yields, but less risk. Those with junk grades sport higher yields to compensate investors for higher risk.
Examining the Investment-Grade/Junk Bond Gap
Fixed income investors know credit quality matters, and that’s particularly true with corporate bonds. Corporate debt with investment-grade ratings feature lower yields, but less risk. Those with junk grades sport higher yields to compensate investors for higher risk.