Portfolio Manager Adam Abbas talked about opportunities in the credit market during an interview with InvestmentNews in the Nasdaq.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
Bond values fluctuate in price so the value of your investment can go down depending on market conditions.
High yield bonds are rated below BBB/Baa. Ratings are determined by third-party rating agencies such as Standard & Poor’s or Moody’s and are an indication of a bond’s credit quality.
Investment grade refers to bonds rated BBB/Baa or higher. Ratings are determined by third-party rating agencies such as Standard & Poor’s or Moody’s and are an indication of a bond’s credit quality.
Duration is a bond’s price sensitivity to interest rate changes.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
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