Credit migration: Difference between revisions
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* [[Ultra short duration bond fund]] (USBF) | * [[Ultra short duration bond fund]] (USBF) | ||
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Latest revision as of 07:21, 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
- Bond
- Corporate credit ratings: a quick guide
- Credit
- Credit migration risk
- Credit rating
- Credit risk
- Downgrade
- Duration
- Investment grade
- Issuer
- Maturity
- Security
- Ultra short duration bond fund (USBF)
- Upgrade
- Volatility
Other resource
Ultra Short Duration Bond Funds: The importance of credit - ACT Knowledge Hub
