Question: What are the uses of bond market indexes?
Answer: Bond market indexes are useful for those who analyze bonds (scenario analysis, price analysis, risk analysis etc.) or manage bond portfolios. Also following uses cases are included for bond market indexes - Acting as performance benchmarks - This works as a benchmark for investors who want to invest through index funds - Determining risk and return of Fixed income asset.
Question: Which are the bonds are considered very risky and low risk high yield bonds?
Answer: The very risky securities are Caa bonds and defaulted bonds and considered as underperformed, while low-risk high-yield bonds Ba rated outperformed.
Question: Do you agree with that statement “Defaulted bond had no correlation with investment-grade bond but significant correlation with high-yield bond issue�?
Answer: Yes.
Question: What all are the participants, you can think of for the Bond market?
Answer: Following are the usual and major participants for the bond markets. - Trader (Front office) - Back office to the trader - Money manager - Investment advisor - Regulator - Retail investor.