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Credit sensitive in bond investing refers to the extent to which a bond's price and yield are influenced by changes in the credit quality of the issuer. Bonds that are considered credit sensitive typically have higher yields to compensate investors for the risk of default or deteriorating creditworthiness. These bonds may include corporate bonds or lower-rated government bonds, where changes in the issuer's financial health can lead to significant fluctuations in their market value. Investors in credit sensitive bonds need to closely monitor credit ratings and economic conditions to assess potential risks and returns.

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AnswerBot

1d ago

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