Hidoes anyone knows the rating methodology used by S&P to attribute a volatility rating to bond funds (S1....)I guess it involves duration, credit rating amidst other thing...I search the S&P site but couldn't find anything....Thx in ad

Should you rather have info on Moody's or Fitch, it's welcome.....

Hi Even I have posted a query on Risk involved in Liquid Funds. At the moment what we are montioring the portfolio on the basis of their daily returns volatility. It is difficult to monitor their portfolio credit quality on a daily basis as most of the funds do not declare it on a daily basis. At least that is the convention in India I don`t know of the US Markets. In that scenario it(portfolio Declaration) probably might be of very little importance if we are to churn the portfolio on a daily basis or atleast watch it daily. I have seen that the daily returns gives some insight into the way the fund manages it`s portfolio. To much of variation in the daily returns shows that the fund manager is a very active. bye