Major credit rating agencies, such as Moody's, S&P Global, and Fitch Ratings, assign the riskiest bond rating, a "D." This rating serves as a stark warning signal for bond investors. It signifies that the bond issuer is either already in default
Risk and return
Price Risk: What It Is, How It Impacts You, Factors Affecting, & Strategies to Manage It
Price risk is a critical concern for fixed-income investors. When interest rates fluctuate, this risk can erode a portfolio's value. Understanding and managing this risk is essential for preserving wealth and maintaining steady returns in today's
Prepayment Risk on MBS: Mitigating the Impact on Your Fixed-Income Investments
Prepayment risk, a significant factor for mortgage-backed securities (MBS) investors, arises when homeowners pay off their mortgages earlier than anticipated, typically by refinancing at lower interest rates. MBS represents ownership in a pool of
Dilution Risk: Understanding and Mitigating This Investment Threat
Dilution risk, a significant concern for fixed-income investors, describes situations where the value of your existing investment is diminished due to changes in the issuer's capital structure. Imagine waking up one morning to discover that the
Credit Rating Agencies: Unlocking Investment Potential with In-Depth Analysis & Expert Insights
Credit rating agencies play a vital role in helping you navigate the complexities of the fixed-income market by providing crucial insights into the credit risk associated with your investments. You're investing in the promise of repayment from
Downgrade Risk: Causes, Impacts, and Strategies to Protect Your Returns
Imagine carefully selecting a bond with a solid yield, only to see its credit rating suddenly plummet, highlighting the significant downgrade risk associated with bond investments. The downgrade risk refers to the chance that a credit rating