Q. Where to invest in the volatile market?

A. Bond markets are safe heavens for investment during volatile market.

Q. What are different type of Bonds Available

• Government Treasury securities
• Agency bonds
• High grade corporate bonds
• High yield (junk) bonds
• Municipal bonds
• Mortgage-backed bonds
• Asset-backed securities
• Emerging market bonds


Q. How to judge the quality of bonds?

A. Bond Rating Codes


Ratings:

Rating S & P /Moody’s
1. S&P Highest quality AAA Aaa
1.2 Moody’s High quality AA Aa
2.S&P Upper medium quality A A
2.1Moody’sMedium grade BBB Baa
3.S&P Somewhat speculative BB Ba
3.1Moody’sLow grade, speculative B B
4.S&P Low grade, default possible CCC Caa
4.1Moody’sLow grade, partial recovery possible CC Ca
5. S & P /Moody’sDefault expected C C
Source: Moody’s Investor’s Service and Standard and Poor’s.