Marketweight
Definition of 'Marketweight'A credit rating system for fixed-income instruments. The marketweight ranking system gives a subjective estimate of the accuracy of the current credit spread and determines whether an investment is attractive. The system includes three ranks: marketweight, overweight and underweight. The marketweight rating indicates that the current credit spread of an instrument is in line with expectations. |
|
Investopedia explains 'Marketweight'Just as stocks may have a buy, sell or hold recommendation, this credit rating system will rate a debt instrument as overweight, underweight or marketweight. Being marketweight is similar to having a hold rating, whereas being overweight or underweight are equivalent to the buy and sell titles, respectively. Analysts will determine whether the current credit spread is an appropriate measure of risk for the investment and place a recommendation accordingly. |
Related Definitions
Articles Of Interest
-
Are High-Yield Bonds Too Risky?
Despite their reputation, the debt securities known as "junk bonds" may actually reduce risk in your portfolio. -
Corporate Bonds: An Introduction To Credit Risk
Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy. -
Vertical Bull and Bear Credit Spreads
This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options. -
What Is A Corporate Credit Rating?
Is the bond you're buying investment grade, or just junk? Find out how check the score. -
Advanced Bond Concepts
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
6 Popular ETF Types For Your Portfolio
Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods. -
Top 5 Budgeting Questions Answered
You don't need a degree to understand your money, begin saving and pay down debt. -
Don't Judge Your Partner Based On Credit Score
Credit scores indicate past behavior but don't necessarily reflect present or future behavior, so don't judge you partner solely on credit. -
Asset Allocation: The First Step Toward Profit
Understanding the different asset classes is an essential part of portfolio diversification.
Free Annual Reports