Bond funds

What changed

• •Government bond funds. Each of the eight fund countries has a fund that holds its own government's bonds.
• •Four global bond funds. Investment grade sovereign, emerging markets sovereign, investment grade corporate, and high yield corporate. The emerging markets and high yield funds hold the riskier paper and pay for it in yield.
• •They trade with the bond market. Bond funds buy from the market at its ask and sell to it at its bid when holders redeem. Coupons build the fund's value turn by turn.
• •Every fund can raise cash from bonds. A fund that owes redemptions and has too little cash sells shares first, then bonds.