How can a triple-A rated fund not use all triple-A rated securities?
The evaluation of credit risk involves a number of different factors, including the credit quality of individual holdings, their maturity and the diversification of fund holdings. Taking these three factors into consideration, fund managers can construct portfolios to preserve capital and protect income, and satisfy the strict criteria necessary to qualify for triple-A rating specifically, AAAm with Standard & Poors and Aaa/MR1+ with Moodys.
