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Moody's Aaa Corporate Bond, also known as "Moody's Aaa" for short is an investment bond that acts as an index of the performance of all bonds given an Aaa rating by Moody's Investors Service. This corporate bond is often used in macroeconomics as an alternative to the federal ten-year Treasury Bill as an indicator of the interest rate.
The credit rating is a financial indicator to potential investors of debt securities such as bonds.These are assigned by credit rating agencies such as Moody's, Standard & Poor's, and Fitch, which publish code designations (such as AAA, B, CC) to express their assessment of the risk quality of a bond.
= reasonably expected 7 to 10 Year Growth Rate of EPS = the average yield of AAA corporate bonds in 1962 (Graham did not specify the duration of the bonds, though it has been asserted that he used 20 year AAA bonds as his benchmark for this variable [5]) = the current yield on AAA corporate bonds.
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On July 10, 2007, in "an unprecedented move", Moody's downgraded 399 subprime mortgage-backed securities that had been issued the year before. Three months later, it downgraded another 2506 tranches ($33.4 billion). By the end of the crisis, Moody's downgraded 83% of all the 2006 Aaa mortgage backed security tranches and all of the Baa tranches.
Like all markets, bonds fluctuate. Your returns will be based on what you hold, when you buy it, tax treatment and other factors. While many choose to diversify their portfolios across stocks ...
A bond ETF allows you to buy bonds from many companies in one fund, reducing your risk. Less analytical work: If you’re buying a bond ETF, you don’t need to analyze the company as you would ...
There is a time dimension to the analysis of bond values. A 10-year bond at purchase becomes a 9-year bond a year later, and the year after it becomes an 8-year bond, etc. Each year the bond moves incrementally closer to maturity, resulting in lower volatility and shorter duration and demanding a lower interest rate when the yield curve is rising.