An opinion of the maturity-adjusted credit quality of investments within mutual funds and similar investment vehicles that principally invest in fixed income obligations
EXPLORE THE BENEFITS OF A
Bond Fund Assessment
Provides an independent, monitored, third party opinion into the credit quality of a fund’s portfolio.
Promotes enhanced transparency to management companies.
Applies globally to bond funds, which are also called fixed-income funds, and includes many types of fixed-income funds, such as bond mutual funds, exchange-traded funds and local government investment pools.
Reflects our assessment of the creditworthiness of the assets held by the fund, adjusted for maturity. Other risks, such as liquidity, operational, interest rate, currency and any other market risk, are excluded from the assessment.
FEATURES
An assessment scale which differentiates fund assessments from credit ratings through the use of a distinct set of symbols (e.g, Aa-bf).
The assessment framework uses a credit matrix, for which we may use historical and/or forward-looking data as inputs, along with other factors which may be assessed outside the credit matrix, including considerations from our cross-sector rating methodologies, if relevant.
As a result, the credit matrix outcome is not expected to match the actual BF- assessment for each bond fund.
Typical uses
Fund sponsors may use Bond Fund Assessments to inform market participants about the credit quality of the fund's portfolio.
Disclaimer Please note that a Bond Fund Assessment is not a credit rating.
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