Corporate Bond Short-Term Fund

(redirected from Corporate Bond Short-Term Funds)

Corporate Bond Short-Term Fund

A mutual fund that invests predominantly or exclusively in corporate bonds (that is, bonds issued by private sector companies) with maturities of less than a year or so. These funds are considered beneficial when interest rates are falling (and therefore when bond prices are rising) because the funds sell bonds, creating gains from the higher prices. Corporate bond short-term funds generally carry lower risks than mutual funds investing primarily in stocks, but the levels of risk vary according to the credit ratings of the companies whose bonds are represented in the fund.
Full browser ?