Credit migration: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand definition.) |
imported>Doug Williamson (Add link.) |
||
Line 24: | Line 24: | ||
* [[Downgrade]] | * [[Downgrade]] | ||
* [[Investment grade]] | * [[Investment grade]] | ||
* [[Issuer]] | |||
* [[Maturity]] | * [[Maturity]] | ||
* [[Ultra short duration bond fund]] (USBF) | * [[Ultra short duration bond fund]] (USBF) |
Revision as of 07:19, 25 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
- Issuer
- Maturity
- Ultra short duration bond fund (USBF)
- Upgrade
- Volatility
Other resource
Ultra Short Duration Bond Funds: The importance of credit - ACT Knowledge Hub