Investment grade

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Investment grade

In the context of bond ratings, the rating level above which institutional investors have been authorized to invest.

Investment Grade

Describing a bond with a medium or high rating. Bonds rated Baa3 by Moody's or BBB- by S&P or Fitch. Investment-grade bonds are considered sufficiently low-risk that the law allows banks to invest in them. In addition to being low-risk, investment-grade bonds are low-return, greatly reducing the cost on the issuer. Most American Treasury and municipal bonds are investment-grade. See also: Junk, High-Rating.

Investment grade.

When a bond is rated investment grade, its issuer is considered able to meet its obligations, exposing bondholders to minimal default risk.

Most US corporate and municipal bonds are rated by independent services such as Moody's Investors Service and Standard & Poor's (S&P).

The ratings are based on a number of criteria, including the likelihood that the bond issuer will be able to make interest payments and repay the principal in full and on time.

The four categories of bonds rated BBB and higher by S&P or Baa and higher by Moody's are considered investment grade.

References in periodicals archive ?
UBS has an overweight position on Emerging Market sovereign bonds in US dollars relative to high grade bonds, and also on US 10-year Treasuries relative to cash.
Taking advantage of the strong market backdrop for high grade bonds and appetite for ESG investments, EBRD has achieved an impressive mix of green investor diversification and very attractive pricing.
Create a 50:50 portfolio allocation between high grade bonds (e.
Bonds also have a lower risk-based capital requirement, so the NAIC requires less surplus for bonds, particularly high grade bonds.
Currently, UBS is underweight in high grade bonds versus equities as UBS feels that stocks will be supported by still ultra-low yields and high quality bonds will be hurt by upcoming rate rises.
Contract award: Investment Management Agreement (concerning investment management of Danish High Grade Bonds for the Professional Association LD).
Cohen continues: "Of course, we are working against the myth that bond covenants don't change for high grade bonds.
NEW YORK -- For the first time, high grade bond investors can receive hours of insightful analysis on the structure of new bond offerings delivered to them pre-pricing -- all in layman's terms -- neatly packaged in a clear and concise report and from which they can take away the important points in just minutes.
by affiliates of Blackstone Group and GE Commercial Finance respectively, and the purchase of Centerpoint Properties by an affiliate of CALPERS offer high profile examples of the privatization of REITs with high grade bonds outstanding.
About 50% of invested assets are high grade bonds and 30% are equities.
company's strategy is to back liabilities with high grade bonds,

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