Credit migration

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