N-2 | 12 Months Ended |
Feb. 29, 2024 |
Cover [Abstract] | |
Entity Central Index Key | 0000005094 |
Amendment Flag | false |
Document Type | N-CSR |
Entity Registrant Name | Invesco Bond Fund |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | Recent Changes During the Fund’s most recent fiscal year, there were no material changes in the Fund’s investment objectives or policies that have not been approved by shareholders or in the principal risk factors associated with investment in the Fund. This information may not reflect all of the changes that have occurred since you purchased the Fund. Investment Objective The investment objective of Invesco Bond Fund (the “Fund”) is to seek interest income while conserving capital. The Fund’s investment objective may be changed by the Board of Trustees (the “Board”) without shareholder approval. Investment Policies of the Fund It is the Fund’s policy, which may not be changed without shareholder approval, to have at least 80% of its total assets invested in: (a) debt securities rated, at the time of purchase, in one of the four highest categories by Moody’s Investors Service, Inc., S&P Global Ratings or Fitch Ratings, Inc.; (b) securities of, or guaranteed by, the U.S. government or any agency of the U.S. government; (c) commercial paper rated “prime”; or (d) cash and cash equivalents. The policy stated in the foregoing sentence is a fundamental policy of the Fund and may not be changed without shareholder approval of a majority of the Fund’s outstanding voting securities, as defined in the Investment Company Act of 1940, as amended (“1940 Act”). In complying with this 80% investment requirement, the Fund may invest in derivatives and other instruments that have economic characteristics similar to the Fund’s direct investments that are counted toward the 80% investment requirement. If two or more nationally recognized statistical rating organization (“NRSRO”) have assigned different ratings to a security, the Adviser uses the highest rating assigned. † The Fund invests primarily in fixed-rate U.S. investment grade corporate bonds and may invest up to 20% of its total assets in non-investment non-U.S. The Fund may invest in securities of foreign issuers in the form of depositary receipts. The Fund may invest in government securities, asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities of any rating. The Fund may invest up to 25% of its total assets in convertible debentures and bonds with warrants attached, provided that the Fund does not have, as a direct result of any such investment, more than 20% of its total assets invested in equity securities. Ordinarily, the Fund purchases debt securities which by their terms contain call or refunding protection for a minimum of five years from the date of issuance, or which are not considered by the Fund likely to be called or refunded for a minimum of five years, in order to preserve for such periods the initial annual yields obtained on these debt securities. The Fund may invest in securities subject to contractual restrictions on resale. The Fund may also invest up to 5% of its net assets in bank loans, loan participations and assignments. Derivatives The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. The Fund may invest in bond or rate futures contracts to manage interest rate exposure. The Fund can use treasury futures contracts to increase or reduce its exposure to U.S. Treasury securities. The Fund may not enter into a futures contract if immediately thereafter the Fund’s current liability under all futures contracts would be more than 30% of the Fund’s total assets. The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts for investment purposes or to manage interest rate, currency or credit risk. The Fund can engage in foreign currency transactions either on a spot basis (i.e., for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign currency contracts to seek gain or to mitigate the risk of foreign currency exposure. In addition, the Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. The Fund can use options to seek investment return or to seek to mitigate risk and to seek to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fund can also use credit default swap options to gain the right to enter into a credit default swap at a specified future date. The Fund can further use swaptions (options on swaps) to manage interest rate risk. In attempting to meet its investment objective, the Fund may engage in active and frequent trading of portfolio securities. Temporary Defensive Investments. Investment Process. appreciation. The Fund’s security selection is supported by a team of specialists. Team members conduct top-down bottom-up In addition, the following policies are fundamental policies of the Fund and may not be changed without the approval of a majority of the Fund’s outstanding voting securities, as defined in the 1940 Act: The Fund may not invest more than 5% of its total assets at market value in securities of companies which, including predecessor companies and operations, have been in continuous operation less than three years. The Fund may invest no more than 10% of its assets in preferred stocks. The Fund may not invest more than 20% of its assets in debt securities which are not publicly offered or traded or in debt securities purchased in private placements, of which no more than 10% of its assets may be in securities of issuers which have not issued comparable securities which are rated at the time of purchase at least Baa (as determined by Moody’s Investors Service, Inc.) or BBB (as determined by S&P Global Ratings or Fitch Ratings, Inc.). Securities issued pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) are not considered to be subject to the foregoing 20% limitation. The Fund may invest up to 10% of its total assets in securities of companies which invest or deal in real estate, including real estate investment trusts (“REITs”). |
Risk Factors [Table Text Block] | Principal Risks of Investing in the Fund As with any fund investment, loss of money is a risk of investing. The risks associated with an investment in the Fund can increase during times of significant market volatility. The principal risks of investing in the Fund are: Market Risk. Market Disruption Risks Related to Armed Conflict. Debt Securities Risk. borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event. Changing Fixed Income Market Conditions Risk. Interest Rate Risk. Credit Risk. incur additional expenses and may determine to invest additional assets with respect to such issuer or the project or projects to which the Fund’s securities relate. Further, the Fund may incur additional expenses to the extent that it is required to seek recovery upon a default in the payment of interest or the repayment of principal on its portfolio holdings and the Fund may be unable to obtain full recovery on such amounts. Income Risk. Call Risk. U.S. Government Obligations Risk. High Yield Debt Securities (Junk Bond) Risk. Derivatives Risk. under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. Forward Foreign Currency Contracts Risk. Future Contracts Risk. Options Risk. Swap Transactions Risk. over-the-counter immediately following execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house. Market Discount from Net Asset Value Risk. closed-end Foreign Securities Risk. Foreign Credit Exposure Risk. economic or governmental developments that could affect payments of principal and interest. Emerging Markets Securities Risk. Mortgage– and Asset–Backed Securities Risk. Privately-issued mortgage-related securities are not subject to the same underwriting requirements as those with government or government-sponsored entity guarantees and, therefore, mortgage loans underlying privately-issued mortgage-related securities may have less favorable collateral, credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower characteristics. The Fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime mortgages. Convertible Securities Risk. Liquidity Risk. Restricted Securities Risk. restricted security and therefore may be less able to predict a loss. Rule 144A Securities and Other Exempt Securities Risk. Preferred Securities Risk. non-payment REIT Risk/Real Estate Risk. mid-cap Environmental, Social and Governance (ESG) Considerations Risk. issuers or industries and may not work as intended. The Fund may underperform other funds that do not incorporate ESG factors or that use a different methodology to identify and/or incorporate ESG factors. Information used to evaluate such factors may not be readily available, complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively impact the ability to accurately assess credit quality, which could negatively impact the Fund’s performance. There is no guarantee that the incorporation of ESG considerations will be additive to the Fund’s performance. Cash/Cash Equivalents Risk. Risks of Investing in Bank Loans, Loan Participations and Assignments. The Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling a participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off The rights and obligations acquired by the Fund as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. Loans, loan participations and assignments could be sold only to a limited number of institutional investors. If there is no active secondary market for a loan, it may be more difficult to price the loan or to sell the interests in such a loan at a price that is acceptable. In addition, loans held by the Fund might not be considered securities for purposes of the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and therefore a risk exists that purchasers, such as the Fund, may not be entitled to rely on the anti-fraud provisions of those Acts. Depositary Receipts Risk. underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. Active Trading Risk. Financial Markets Regulatory Risk. Management Risk. |
Market Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Risk. |
Market Disruption Risks Related to Armed Conflict [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Disruption Risks Related to Armed Conflict. |
Debt Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Debt Securities Risk. borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event. |
Changing Fixed Income Market Conditions Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Changing Fixed Income Market Conditions Risk. |
Interests Rate Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Interest Rate Risk. |
Credits Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Credit Risk. incur additional expenses and may determine to invest additional assets with respect to such issuer or the project or projects to which the Fund’s securities relate. Further, the Fund may incur additional expenses to the extent that it is required to seek recovery upon a default in the payment of interest or the repayment of principal on its portfolio holdings and the Fund may be unable to obtain full recovery on such amounts. |
Income Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Income Risk. |
Call Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Call Risk. |
U.S. Government Obligations Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | U.S. Government Obligations Risk. |
High Yield Debt Securities (Junk Bond) Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | High Yield Debt Securities (Junk Bond) Risk. |
Derivatives Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Derivatives Risk. under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. |
Forward Foreign Currency Contracts Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Forward Foreign Currency Contracts Risk. |
Future Contracts Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Future Contracts Risk. |
Options Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Options Risk. |
Swap Transactions Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Swap Transactions Risk. over-the-counter immediately following execution of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house. |
Market Discount from Net Asset Value Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Discount from Net Asset Value Risk. closed-end |
Foreign Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Foreign Securities Risk. |
Foreign Credit Exposure Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Foreign Credit Exposure Risk. economic or governmental developments that could affect payments of principal and interest. |
Emerging Markets Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Emerging Markets Securities Risk. |
Mortgage and AssetBacked Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Mortgage– and Asset–Backed Securities Risk. Privately-issued mortgage-related securities are not subject to the same underwriting requirements as those with government or government-sponsored entity guarantees and, therefore, mortgage loans underlying privately-issued mortgage-related securities may have less favorable collateral, credit risk, liquidity risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower characteristics. The Fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include subprime mortgages. |
Convertible Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Convertible Securities Risk. |
Liquidity Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Liquidity Risk. |
Restricted Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Restricted Securities Risk. restricted security and therefore may be less able to predict a loss. |
Rule 144A Securities and Other Exempt Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Rule 144A Securities and Other Exempt Securities Risk. |
Preferred Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Preferred Securities Risk. non-payment |
REIT RiskReal Estate Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | REIT Risk/Real Estate Risk. mid-cap |
Environmental, Social and Governance (ESG) Considerations Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Environmental, Social and Governance (ESG) Considerations Risk. issuers or industries and may not work as intended. The Fund may underperform other funds that do not incorporate ESG factors or that use a different methodology to identify and/or incorporate ESG factors. Information used to evaluate such factors may not be readily available, complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively impact the ability to accurately assess credit quality, which could negatively impact the Fund’s performance. There is no guarantee that the incorporation of ESG considerations will be additive to the Fund’s performance. |
CashCash Equivalents Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Cash/Cash Equivalents Risk. |
Risks of Investing in Bank Loans, Loan Participations and Assignments [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Risks of Investing in Bank Loans, Loan Participations and Assignments. The Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling a participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off The rights and obligations acquired by the Fund as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. Loans, loan participations and assignments could be sold only to a limited number of institutional investors. If there is no active secondary market for a loan, it may be more difficult to price the loan or to sell the interests in such a loan at a price that is acceptable. In addition, loans held by the Fund might not be considered securities for purposes of the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and therefore a risk exists that purchasers, such as the Fund, may not be entitled to rely on the anti-fraud provisions of those Acts. |
Depositary Receipts Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Depositary Receipts Risk. underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. |
Active Trading Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Active Trading Risk. |
Financial Markets Regulatory Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Financial Markets Regulatory Risk. |
Management Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Management Risk. |
Leverage Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | M. Leverage Risk |
Collateral [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | N. Collateral |
Other Risks [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | O. Other Risks Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs. Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential. There is a possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may occur quickly and without advanced warning following sudden market downturns or unexpected developments involving an issuer, and which may adversely affect the liquidity and value of the security. The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile. |
Notes [Member] | |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | The Fund’s investment objective is to seek interest income while conserving capital. |