This is a common investment-grade bond that’s backed by many junk bonds. A junk bond isn’t usually investment-grade. However, pooling these bonds together facilitates additional diversification, which allows the bond to be investment-grade.
This is a common investment-grade bond that’s backed by many junk bonds. A junk bond isn’t usually investment-grade. However, pooling these bonds together facilitates additional diversification, which allows the bond to be investment-grade.