What is the BBB corporate bond rate?

What is the BBB corporate bond rate?

Stats

What is BBB index?

WisdomTree Fundamental U.S. BBB Corporate Bond Index is a rule-based alternatively weighted index designed to capture the performance of selected issuers in the lowest tier of US investment grade corporate bond market that are deemed to have attractive fundamental and income characteristics.

Why the BBB is a sham?

The BBB has come under fire for allegations of unfair ratings and unethical practices in the past. In 2010, the Connecticut Attorney General likened its membership program to a “pay to play” scheme after a local bureau gave an annual award for business ethics to a company that was under investigation by his office.

What is considered an investment-grade bond?

Bonds that are believed to have a lower risk of default and receive higher ratings by the credit rating agencies, namely bonds rated Baa (by Moody’s) or BBB (by S&P and Fitch) or above. These bonds tend to be issued at lower yields than less creditworthy bonds.

What is the yield on corporate bonds?

The current yield is the portion generated by coupon payments, which are usually paid twice a year, and it accounts for most of the yield generated by corporate bonds. For example, if you pay $95 for a bond with a $6 annual coupon ($3 every six months), your current yield is about 6.32% ($6 ÷ $95).

Does filing a complaint with BBB do anything?

One good option is to file a complaint with the Better Business Bureau (BBB). The BBB helps consumers settle disputes related to sales, contracts, customer service, warranties, billings, and refunds every year. It accepts complaints even if the company that’s harmed you doesn’t belong to the Better Business Bureau.

What is the BBB rating range?

BBB assigns ratings from A+ (highest) to F (lowest). In some cases, BBB will not rate the business (indicated by an NR, or “No Rating”) for reasons that include insufficient information about a business or ongoing review/update of the business’s file.

How many BBB- issuers were rated Hy in 2016?

In 2016, 18% of BBB- issuers in this data set at the beginning of 2016 were rated HY by the end of 2016, and only 8% were upgraded above BBB- during that year. For the four years before 2016 the upgrade vs downgrade trend for BBB- issuers was positive again, averaging 12% upgrades vs 8% downgrades one year later.

How risky is the BBB- market?

The rate of growth for the BBB- market is 1.5x the rate of growth of the HG non-Financial market overall, according to J.P. Morgan.  This increases the risk to HG investors in the next recession or sector disruption period.

How has the BBB- rating category changed across non-financial issuers?

While across non-Financial issuers the percentage of debt in each rating category has actually been relatively stable, the BBB- category has increased from 11% of debt in 2012 to 16% in 2017 (see below). In our JULI index as of YE17, there was $718bn of BBB- debt, which represents 14% of $5.1tn in total debt.