Before adding corporate bonds to a portfolio, an investor must evaluate the following: A. Credit Quality (Ratings)
The risk that the company goes bankrupt and cannot pay interest or principal.
Higher yield, but highly sensitive to interest rate changes. 4. How to Execute a Purchase There are two primary ways to "buy" into corporate debt:
Buying shares of a diversified basket of bonds. This offers instant diversification and professional management with a much lower entry cost. 5. Risks Involved
Rated AAA to BBB. These are stable companies with low default risk.
Investors typically turn to corporate bonds for three primary reasons:
Before adding corporate bonds to a portfolio, an investor must evaluate the following: A. Credit Quality (Ratings)
The risk that the company goes bankrupt and cannot pay interest or principal. buy corporate bonds
Higher yield, but highly sensitive to interest rate changes. 4. How to Execute a Purchase There are two primary ways to "buy" into corporate debt: Before adding corporate bonds to a portfolio, an
Buying shares of a diversified basket of bonds. This offers instant diversification and professional management with a much lower entry cost. 5. Risks Involved buy corporate bonds
Rated AAA to BBB. These are stable companies with low default risk.
Investors typically turn to corporate bonds for three primary reasons: