Nearly 70% of the portfolio is sub-investment grade, which implies high risk but default rates are low (below 4% on high yield, according to credit-rating agency Moody’s) and unlikely to rise ...

The three major bond ratings agencies are Moody's, Standard & Poor's, and Fitch Ratings. Investment-grade bonds offer lower interest but high safety; speculative ones have higher risk and return.

Sub-investment grade issuers showed strong fundamentals with improved earnings, reduced leverage, and enhanced liquidity, supported by robust capital market activity and positive loan mutual fund ...