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High-Grade Bond

   Also found in: Wikipedia 0.01 sec.
High-grade bond
A bond with Triple-A or Double-A rating in Standard & Poor's, or Moody's rating system.

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.


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When you had this market turmoil, you had investors exiting stocks, looking for conservative strategies, anything from CDs to high-grade bonds," Mahaffy said from his sixth-story office in the Prospect Building on University Avenue.
It's true that the majority of our assets are invested in high-grade bonds, and they are at a lower interest rate than they were five years ago.
He also invests in the Vanguard Wellington fund (VWELX), which mixes high-grade bonds with blue-chip stocks.
 
 
 
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