Corporate bond fund
Bond rating and maturity are key factors in types of bond funds. Corporate bond funds are usually assumed to invest in investment-grade bonds unless they are labeled as a high-yield bond fund or a junk bond fund. Investment-grade bonds are rated "AAA" to "BBB-" among credit-rating agencies. Junk bonds are rated "BB+" or lower.
The average maturity of a bond fund may be long or short. Short bond funds pay a lower yield and are less volatile. The market value of long bond funds will vary more with changes in interest rates and related news.
Related Fool Articles
Recent Mentions on Fool.com
- Read This Before You Buy Prospect Capital Corporation Stock
- Want to Retire Rich? Keep Your 401(k) Choices Simple
- 3 Simple Ways to Get More Income in Retirement
- 7 Things You Probably Don't Know About Annaly Capital Management Inc.
- 3 Reasons Women Aren't Saving Enough for Retirement -- and How We Can Fix That
- Should You Be Footing The Bill For These Profitable Businesses?