Thursday, December 23, 2010

Bond Fund

A bond fund invests primarily in bonds and other debt securities and instruments. Within bond funds there is a wide variety of specialties. For example there are global bond funds which invest in bonds throughout the world, and may use a variety of strategies to try and add value to returns. Other focuses and security types bond funds may invest or specialize in include: government bonds (or sovereigns), corporate bonds (credit), mortgage backed securities, convertible bonds, municipal bonds, and others. Some may even specialize in junk bonds or high yield securities that have a lower credit rating. Many bond funds will have a minimum credit rating within which they can invest, for example A- and above, or investment grade (BBB and above) or better. The largest bond fund managers at present are Blackrock and PIMCO.

Synonyms:  Bond portfolio, Bond manager, Debt fund, Sovereign fund, Credit fund, Fixed income fund, Fixed income portfolio

Comments?
If you have any questions, or disagree with the definition, or if you have anything to add we'd love to hear from you. Please add your comments in the box below

No comments:

Post a Comment