Credit risk, also known as default risk, is a way to measure ... risk by diversifying their portfolios. For example, they could purchase bonds with investment-grade ratings, such as U.S ...

Bond ratings indicate a bond's credit quality, helping investors assess default risk. The three major bond ... break down the letter-based rating. For example, with S&P and Fitch, a rating of ...

You can limit default risk by monitoring downgrades ... some bonds rated A- yield more than some bonds rated BBB+, for example. But yield increases in the list below as you move from the first ...

Because of the greater risk of default ... websites (Yahoo Finance, for example) will provide information on the underlying holdings and the quality of the bonds in the fund you own.

Many of these bonds tend to be non-investment-grade, which increases the risk of default. However, the floating-rate feature makes them resistant to rising rates and currently produces a high 7.8% ...