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MFS Corporate Bond Uses Credit Risk Wisely

The Bronze-rated fund team's security selection skills have allowed it to deliver strong long-term returns.


Brian Moriarty: MFS Corporate Bond fund is a strong choice for investors looking to add credit risk to their portfolio. The fund invests primarily in investment-grade corporate bonds, but it does include a high-yield allocation that usually ranges from 10 to 20%.

Managers and analysts focus much of their time on bonds rated BBB and BB. They argue that this portion of the corporate bond universe is less efficient than the rest of the  market, and it offers them an opportunity to demonstrate their skill at security selection.

Brian Moriarty does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.