What Does a Mutual Fund ’ s Average Credit Quality Tell Investors ?

@inproceedings{Deng2009WhatDA,
  title={What Does a Mutual Fund ’ s Average Credit Quality Tell Investors ?},
  author={Geng Deng and Craig McCann and Edward O’Neal},
  year={2009}
}
Managers of bond mutual funds frequently report an “Average Credit Quality” statistic in their marketing materials. This statistic is based on Standard & Poor’s and Moody’s assessment of the credit risk of the individual bonds in the portfolio and is reported to mutual fund investors using the familiar letter scale for rating the credit risk of bonds. For… CONTINUE READING