Bond ratings indicate a bond's credit quality, helping investors assess default risk. The three major bond ratings agencies are Moody's, Standard & Poor's, and Fitch Ratings. Investment-grade ...

Recently, institutions have developed their own risk rating systems. These produce estimates of the probability ... Since intensity-based models are based on debt prices, they can reflect complex ...

Higher default risk in bonds typically correlates with higher ... By evaluating credit ratings and financial health, investors can gauge the default risk associated with a particular security.

Default risk refers to the possibility that a company may fail to meet its financial obligations, such as paying dividends or ...

A bond rating is an assessment of the creditworthiness of the bond's issuer. It is a prediction of the likelihood that a ...

You can limit your default risk by establishing a minimum rating on bonds you select for your portfolio. Ratings are subject to change, so maintaining a quality level consistent with your risk ...

USHY holds exposure to BB and B-rated bonds, which in 2025 experienced a default rate below the historical average. Explore ...

Credit risk, also known as default risk, is a way to measure ... All other types of bonds entail some credit risk. Bonds with a rating of BB+ and lower are known as high-yield or junk bonds ...

The lower the rating, the higher is the rating agency’s estimate of the bond’s default risk. Your choice of which bond to buy involves a tradeoff between default risk and yield. You also need ...

As high-yield bonds are issued by companies with lower credit ratings, they have a higher chance of default. As such, they're better suited for investors with higher risk tolerances and ...

They assign bond ratings to corporate bonds ... Just remember, the higher the yield, the higher the risk of default, and in the event that a company declares bankruptcy, its investors may not ...

Barings Global Short Duration High Yield Fund offers low duration risk and capital preservation. But read why BGH CEF is more ...