corporate bond fund

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.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.