BOND RATINGS AND DEFAULT RISK
A bond investor's worst nightmare is to witness the default or
complete bankruptcy of the firm that issued his or her bond. A default
generally results in a loss on your investment. To help investors avoid
such losses, rating firms have established bond ratings in an attempt to
evaluate the default risk of specific bonds. In the following tutorial,
you will learn about the following topics related to bond ratings and default
risk:
Let's begin this tutorial by learning about default risk,
one of the fundamental concepts in bond analysis.
