Investment grade bonds

A bond that is assigned a rating in the top four categories by commercial credit rating companies. For example, S&P classifies investment grade bonds as BBB or higher, and Moodys' classifies investment grade bonds as Ba or higher. Related: High-yield bond. The New York Times Financial Glossary

Financial and business terms. 2012.

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  • investment-grade bonds — A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment grade bonds as BBB or higher, and Moody s classifies investment grade bonds as Ba or higher. Related: high yield bond.… …   Financial and business terms

  • Investment Grade — A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such as Standard Poor s, use different designations consisting of upper and lower case letters A and B to identify a bond s credit …   Investment dictionary

  • Investment grade — A bond is considered investment grade or IG if its credit rating is BBB or higher by Standard Poor s or Baa3 or higher by Moody s or BBB(low) or higher by DBRS. Generally they are bonds that are judged by the rating agency as likely enough to… …   Wikipedia

  • investment-grade bond — A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment grade bonds as BBB or higher, and Moody s classifies investment grade bonds as Ba or higher. Related: high yield bond.… …   Financial and business terms

  • investment-grade — inˈvestment ˌgrade adjective FINANCE investment grade Securities (= shares, bonds etc) are a fairly safe investment because they are quite likely to be repaid: • Philadelphia was able to get investment grade ratings for the issue because money to …   Financial and business terms

  • investment-grade market — ➔ market1 * * * investment grade market UK US noun [C] (also high grade market) FINANCE ► a market for good quality bonds that have a low risk of not being paid back: »I have no AA or AAA rated bonds in the portfolio due to my concern for the… …   Financial and business terms

  • investment-grade debt — ➔ debt * * * investment grade debt UK US noun [U] FINANCE ► the type of bond or other loan that has a low risk of not being paid back: »The company in May sold $3.5 billion of bonds in a record investment grade debt sale, and then issued $1.5… …   Financial and business terms

  • investment grade — A term defined by the Office of Comptroller of the Currency ( OCC) (12 CFR 1) and used in its investment regulation to define eligible investments. Investment grade means a security that is rated in one of the four highest rating categories by… …   Financial and business terms

  • investment grade —  Bonds that do not have a high default risk.  ► Corporate and municipal bonds that receive at least a Baa rating from MOODY’S or a BBB rating from STANDARD AND POOR’S agencies …   American business jargon

  • investment-grade — Describing a bond that has been given a relatively high credit rating by a major rating agency, namely Baa and above by Moody s or BBB and above by Standard & Poor s or Fitch s. Lower rated bonds may promise a higher yield but are inherently more …   Big dictionary of business and management

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