how does credit quality impact a roll down return strategy 
credit quality plays a role but is not as significant as the duration in a roll down return strategy higher credit quality bonds offer stability and lower risk but generally lower yields also higher credit quality bonds like investment grade bonds are more influenced by interest rate risk than credit risk while lower credit quality bonds can enhance returns they introduce higher volatility and risk of loss and are more affected by credit risk than interest rate risk the bottom lineroll down returns are a concept in investing with fixed income securities concerning the potential capital appreciation of a bond as it approaches maturity within a given yield curve environment this strategy expects the bond to roll down the yield curve transitioning from its current position to one with shorter maturity in a typical upward sloping curve this movement decreases yield which inversely increases the bond s price this price appreciation combined with the bond s coupon payments contributes to its total return over the period before maturity the effectiveness of this strategy depends on the shape of the yield curve the interest rate changes or lack thereof and the duration of the bonds held 