corporate bond fund

(redirected from Corporate Bond Funds)

Corporate Bond Fund

A mutual fund consisting only of corporate bonds. A common stock fund may be high-risk if it invests primarily in junk bonds, or it may be low-risk if it invests in established investment-grade bonds.

corporate bond fund

An investment company that invests in long-term corporate bonds and passes the income from these securities to its stockholders. Although these funds vary in value with changes in long-term interest rates, they usually provide a current return in excess of money market funds. Corporate bond funds are of interest primarily to investors seeking high current income or to those betting on a substantial fall in long-term interest rates.
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There are also worries about the potential impact on mainstream corporate bond funds, partly because they also tend to be quite long duration but also because the corporate debt market can be illiquid and this could exacerbate price losses if rates had to go up.
Schroders is pleased to announce the launch of Schroder ISF EURO Credit Conviction, a new fund which aims to achieve a higher yield than core euro corporate bond funds by focusing on the best ideas generated by the Schroders European and UK credit team s proven investment approach.
CORPORATE BOND FUNDS CORPORATE BOND FUNDS THESE are professionally managed funds which buys a large number of individual bonds so that you don't encounter the same risks as with retail corporate bonds.
Duration funds such as income funds do not take credit risk but carry high duration risk, while credit funds such as corporate bond funds are high on credit risk but maintain a tight duration of, say, two to three years," says Pandya.
5-5% per year is more realistic from corporate bond funds now plus, perhaps, another 1% or so for capital growth.
So, perhaps taking those profits from government bond funds and reallocating them to corporate bond funds might prove profitable.
Investors who are seeking income but concerned about the volatility of investing in shares may find that corporate bond funds provide the answer.
Sanders recommends investing in AAA-rated, high-quality corporate bonds, shorter-term government bonds, and intermediate corporate bond funds.
Stock Fund Falls; International Equity Funds Up; High-Quality Corporate Bond Funds Positive; High-Yield Bond Funds Volatile
A mix of share-based investments, fixed-interest securities and areas such as property funds and corporate bond funds can reduce risk.