Question-71: Can you give some example of the firm who creates High Yield bond indexes?
Answer: Below are the few examples who have created High Yield Bond Indexes
- Credit Suisse First Boston
- Barclays Capital
- Bank of America-Merrill Lynch
- Morgan Stanley Smith Barney (MSSB).
Question-72: Gove some example of the firms creates Global Government Bond Market Indexes?
Answer:
- P. Morgan
- Barclays Capital
- Bank of America-Merrill Lynch
- Morgan Stanley Smith Barney.
Question-73: What do you mean by investment grade bond indexes?
Answer: It means underlying bond (which are tracked) in this index have small probability of the default. And the major factor influencing factor for return is aggregate interest-rate changes based on the Treasury yield-curve.
Question-74: What are the uses of bond market indexes?
Answer: Bond market indexes are useful for those who analyze bonds (scenario analysis, price analysis, risk analysis etc.) or manage bond portfolios. Also following uses cases are included for bond market indexes
- Acting as performance benchmarks
- This works as a benchmark for investors who want to invest through index funds
- Determining risk and return of Fixed income asset.
Question-75: Which are the bonds are considered very risky and low risk high yield bonds?
Answer: The very risky securities are Caa bonds and defaulted bonds and considered as underperformed, while low-risk high-yield bonds Ba rated outperformed.
