10 Biggest Bond-Fund Ratings Changes

Here are lists of the five most-improved and five most-deteriorated bond fund ratings from May 31 to June 30.

The most-improved bond fund this month is the Wells Fargo Advantage CA Tax Free Money Market Trust. This fund moved up six notches to A+, "Buy", from C+, "Hold", in the prior month's ratings. This fund seeks to generate income exempt from federal and California income taxes.

The remaining funds on the upgrade list each climbed five notches. Of those only one traveled all the way from a "Sell" rating of D+ up to a "Buy" rating of B. That fund is the FPA New Income(FPNIX Quote). With $2.04 billion in net assets, the fund is allocated to 38.95% mortgage-backed, 28.59% agency, 3.23% derivatives, 2.90% U.S. Treasuries, and 1.41% corporate debt. The remainder is in cash and equivalents. Their duration target is between 2 to 5 years for their debt portfolio.

The most-deteriorated list includes funds being downgraded to Sell from Hold. The largest fall in June bond ratings was experienced by the RidgeWorth Limited-Term Federal Mortgage Securities Fund(SLMTX Quote) dropping eight notches and bottoming out at a rating of E- from C+ for May. More than 90% of the portfolio is invested in mortgage securities. ...