The static yield is the weighted average of the yield to maturity of a portfolio of bonds, which means the rate of return that can be obtained in the next year if the market does not fluctuate. The corresponding concept is the holding period rate of return, which is the rate of return of the portfolio held for a period of time.

The portfolio duration is 1.7, the static return is 5.85%, the duration risk and interest rate risk are not high, and the credit risk is high.

The static return rate of the low credit short-duration risk portfolio is between 4-4.5%, and the static return rate of this portfolio is more than 1% higher.

But if the default rate of the portfolio is lower than the credit risk default loss rate of greater than 1%, this advantage will be wiped out. Although the overall default rate in our market is not high at present, the junk bond market is too small after all, and it is unlikely that it will be completely diluted by the law of large numbers.

Fixed-income products theoretically refer to financial products in which investors obtain income at an agreed interest rate.

Fixed-income products have low returns, but are low-risk and relatively stable. This type of product plays a stable role in the entire asset allocation system, but the vast majority of fixed-income products are It does not guarantee a return, it just gives a range of return.

Fixed-income products include time deposits, monetary funds, bond-type bank financial management, etc. The longer the investment time of such fixed-income products, the more returns there will be.