A debate is brewing over whether bond mutual fund investors would make more informed choices if prospectuses included ratings assessing the risk of each portfolio.

Standard & Poor's says investors want more information, and it is pitching its own risk rating system. But the National Association of Securities Dealers, the self-regulating body of the brokerage industry, has resisted allowing bond funds to include ratings in their prospectuses.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.