*Assets under management by Capital Fixed Income Investors.
Data as at 31 December 2023
Risk factors you should consider before investing:
All data as at 31 December 2023 in US$ terms and attributable to Capital Group, unless otherwise stated.
Glossary
Bond – A debt instrument, essentially a loan, issued by governments (a sovereign bond) or corporates (a corporate bond) and financed by investors. The bond holders receive interest payments, known as a coupon, and the principal of the bond when it is due.
Excess return – Returns achieved above and beyond returns of a proxy, such as an index.
High-yield bond – A high yield bond is one with a lower credit rating than an investment grade bond. High yield bonds typically offer a higher rate of interest because of a greater risk of default.
Investment-grade bond – A bond issued by a corporation or sovereign that has been awarded a ‘Baa3’ or higher credit rating by Moody’s, or ‘BBB-’ or higher credit rating by Standard & Poor’s or Fitch.
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