Not all bonds are the same. Bonds can be divided into many grades. So how should these bond grades be divided? Let the editor of ClearView take you to understand how to distinguish bond grades.

Bond grade: AaaAaa is the highest grade. Bonds of this grade have the highest quality and the lowest investment risk. They are called "gilt-edged bonds".

As early as the 17th century, the British government, with the approval of Parliament, began to issue government bonds that guaranteed the payment of principal and interest with tax revenues. The credit of these bonds was very high.

The British government bonds issued at that time had a gold edge, so they were called "gilt bonds".

In the United States, bonds rated with the highest credit rating (AAA) by authoritative credit rating agencies are also called "gilt bonds".

Later, the term "gilt bonds" generally referred to all bonds issued by the central government, that is, "treasury bonds".

Bond grade: AaAa is a senior bond, which together with Aaa-rated bonds constitute a high-level bond.

, compared with the Aaa level, the profit is lower and the stability is less.

Bond grade: AA is a higher grade and a good investment choice.

Bond grade: BaaBaa is an average grade with average paying ability.

Bond grade: BaBa is a speculative grade. It is impossible to judge the future situation and lacks guarantee.

Bond grade: BB is a grade that is generally not suitable for consideration. Bond grade: CaaCaa is the grade most likely to fail, Ca is the highly speculative grade (usually bonds issued by companies that have fallen into bankruptcy or have other serious problems), and C is the worst grade.

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Reasons for bond grading. Comparative analysis of parent fund income-risk. The investment scope of the fund reflects the fund's investment style and affects the fund's income and risk level.

The investment scopes of Fuguo Huili and Dacheng Jingfeng are slightly different, and they belong to primary debt base and secondary debt base respectively.

However, unlike traditional primary and secondary debt funds, Fuguo Huili and Dacheng Jingfeng are closed.

The closed nature gives this type of fund the possibility of obtaining higher returns.

The average return and risk of secondary debt funds are higher than those of primary debt funds.

It can be seen from the relationship between primary and secondary debt bases and the CSI 300 that compared with the primary debt bases, the net value growth rate of the secondary debt bases and the CSI 300 have a certain linkage effect.

This linkage effect also increases the risk of secondary debt funds.

In addition, the closed nature gives bond funds the possibility of obtaining higher returns.

Taken together, there is a certain linkage between the closed secondary debt base and the stock market. If the stock index performs well within three years, then Dacheng Jingfeng may perform better than Fuguo Huili; at the same time, combining the primary debt base and the

From the volatility of secondary bonds, it can be seen that the volatility of Dacheng Jingfeng is higher than that of Fuguo Huili.

Comparative analysis of return-risk of sub-funds. Although the returns of the conservative shares and aggressive shares of hierarchical funds come from the returns of the parent fund, the differences in distribution principles make the return-risk characteristics of the conservative shares and aggressive shares different.

For the same increase or decrease, Jingfeng B's loss is higher than Huili B, and Jingfeng A's profit is higher than Huili A.

According to the terms of the fund contract, when the closed period ends and the net value of the Wells Fargo Huili Fund is lower than 0.7813, that is, when the Wells Fargo Huili Fund loses 21.87%, the net value of Huili B will be 0, and the income of Huili A will not be guaranteed; and

When the closed period ends, the net value of Dacheng Jingfeng Fund is lower than 0.7846, that is, when Dacheng Jingfeng Fund loses 21.54%, the net value of Jingfeng B is 0, and Jingfeng A will suffer a principal loss.

Therefore, for the same loss amplitude, the net worth of Jingfeng B is lower than Huili B, that is, the loss amplitude of Jingfeng B is higher than Huili B; for the same profit amplitude, the net worth of Jingfeng A is higher than Huili A, that is, Jingfeng B

A's profit margin is higher than Huixi A.