Fitch Upgrades Hyperion 2005 IG Opportunity Term Trust Volatility to 'V2'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has upgraded Hyperion 2005 Investment-Grade Opportunity Term Trust's (HTO HTO Tritiated Water HTO High Tibial Osteotomy HTO High Temperature Oxidation HTO Hostile Take Over HTO Happy to Oblige HTO Horizontal Take-Off HTO Hydrogen Tritium Oxygen HTO Hospital Transfer Order ) volatility rating to 'V2' from 'V5' following its annual credit analysis. In addition, Fitch affirms the outstanding 'AA' bond fund credit rating on the closed-end bond fund. As HTO approaches its scheduled termination date termination date, n See expiration date. of Nov. 30, 2005, management has shortened the fund's effective duration, including the effect of leverage, to approximately 0.7 years, thereby reducing market risk exposure over the remaining life of the fund. Bond funds rated in the 'AA' category meet very high standards with respect to the credit quality of the underlying assets and the fund's management and operations. Bond fund volatility ratings are assigned on a scale of 'V1' (least volatile) through 'V10' (most volatile). Volatility ratings reflect the trust's effective duration, as well as exposure to changing mortgage prepayments, liquidity risk, and leverage. Bond funds rated in the 'V2' category are considered to have low market risk. Total returns are expected to perform consistently over a broad range of interest rate scenarios. HTO is a diversified, closed-end bond fund listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . HTO seeks to provide investors with a high level of current income and to return at least $10.00 net asset value (NAV See navigation system and navigation bar. ) on or shortly before Nov. 30, 2005. The ratings do not address the ability of the trust to achieve the $10.00 NAV at termination. HTO actively manages its effective duration in relation to a benchmark U.S. Treasury security with a final maturity approximating the trust's termination date. As the trust approaches its termination date, the investment manager will reinvest maturing holdings in shorter-term securities to reduce total portfolio volatility. Therefore, the trust's effective duration is expected to decline over time. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion