Abstract
Credit portfolios invest in corporate and sovereign bonds, which are bonds issued by corporations, usually for a term of more than a year. The issuer of a corporate bond retains full title to its assets and their future growth in value so long as the terms of the bond, including timely payment of interest and capital, are honoured. The investor in a corporate bond earns no more than the interest on the bond, so shares none of the growth prospects of the issuer. By contrast, if the issuer is unable to honour the terms of the bond, the investor risks losing all or part of the investment.
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© 2013 Frances Cowell
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Cowell, F. (2013). Credit Portfolios. In: Risk-Based Investment Management in Practice. Global Financial Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137346407_13
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DOI: https://doi.org/10.1057/9781137346407_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-46692-4
Online ISBN: 978-1-137-34640-7
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