Summary:
Computed based on a bond's yield (return) relative to the range of yields across a similar class of bonds. Yield curves are computed for all bond equivalency classes which requires about 250,000 calculations. Each bond is then rated from 1 to 5 stars based on how its yield compares to the muni bond yields of instruments in the same equivalency class. These ratings are re-calculated daily to ensure they reflect the most current market conditions.
The yield rating enables investors to know if the yield of their bond is high or low relative to an objective benchmark based on quantifiable market data rather than biased opinions of market participants or broad market indices.
BondView’s yield ratings enable an investor to objectively make a more informed decision on a bond’s yield quality.
The following graphic describes the different ratings. These descriptions are relative and do not imply recommendations for specific bonds for individual investors.
| Bond Yield Rating | Explanation |
|---|---|
| 5 Stars | Excellent - Yield higher than 80% to 100% of similar class of bonds. |
| 4 Stars | Good - Yield higher than 60% - 80% of similar class of bonds. |
| 3 Stars | Medium - Yield higher than 40% to 60% of similar class of bonds. |
| 2 Stars | Poor - Yield higher than 20% to 40% of similar class of bonds. |
| 1 Star | Very Poor - Yield higher than 0% to 20% of similar class of bonds. |
Legend
Black - Bond has a yield in the top tiers of its Equivalency Class. Other factors being equal, you should consider this bond for potential investment.Red - Bond has a yield in the lowest tiers of its Equivalency Class. Other factors being equal, you should consider choosing other bonds with higher yield (ie, higher star rating).