Credit migration: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Sources: Linked pages.) |
imported>Doug Williamson (Expand definition.) |
||
| Line 2: | Line 2: | ||
Credit migration is a change in a credit rating over time, either downward or upward. | Credit migration is a change in a credit rating over time, either downward or upward. | ||
Sometimes abbreviated to ''migration.'' | |||
Revision as of 16:42, 9 July 2022
Borrowings - securities - bonds - credit ratings.
Credit migration is a change in a credit rating over time, either downward or upward.
Sometimes abbreviated to migration.
- Credit migration more likely for lower-rated issues
- "... as we move down the credit-rating spectrum, typically the probability of credit migration increases and with this, so too the probability of increased volatility.
- This should be managed by having [only] small exposures to lower-quality credit and to individual lower-quality issuers."
- Ultra Short Duration Bond Funds: The importance of credit - ACT Knowledge Hub.
See also
- Corporate credit ratings: a quick guide
- Credit
- Credit migration risk
- Credit rating
- Credit risk
- Downgrade
- Investment grade
- Maturity
- Ultra short duration bond fund (USBF)
- Upgrade
- Volatility
Other resource
Ultra Short Duration Bond Funds: The importance of credit - ACT Knowledge Hub
