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 ?
M2 EQUITYBITES-July 16, 2015-Ridgewood Canadian Investment Grade Bond Fund announces USD0.
BANKING AND CREDIT NEWS-January 16, 2015-Ridgewood Canadian Investment Grade Bond Fund declares January distribution of USD0.
So before seeking an investment grade bond rating, build up cash and improve liquidity.
M2 EQUITYBITES-May 18, 2015-Ridgewood Canadian Investment Grade Bond Fund announces distribution of USD0.
BANKING AND CREDIT NEWS-January 7, 2015-Ridgewood Canadian Investment Grade Bond Fund declares special distribution
M2 EQUITYBITES-April 22, 2015-Marret Investment Grade Bond Fund declares Q2 distributions of USD0.
BANKING AND CREDIT NEWS-January 2, 2015-Ridgewood Canadian Investment Grade Bond Fund announces quarterly distribution
M2 EQUITYBITES-January 22, 2015-Marret Investment Grade Bond Fund declares Q1 distributions of USD0.
8 November 2013 -- Maryland USA-based exchange traded funds provider ProShares said it has launched an investment grade bond ETF in the United States that provides a built-in hedge against rising interest rates called ProShares Investment Grade--Interest Rate Hedged (BATS: IGHG).
M2 EQUITYBITES-August 18, 2014-Ridgewood Canadian Investment Grade Bond Fund announces August distribution of USD0.
announced today that Lipper, a leading global mutual fund research firm, awarded the Phoenix Multi-Sector Short Term Bond Fund (NARAX) its Best Fund Over Ten Years award for its first-place performance within the Short-Intermediate Investment Grade Bond Fund category.
However, according to Managing Director Tara Innes, 'REIT bonds enjoy some key structural attributes which offer bondholders better prospects for prepayment than those available elsewhere in the investment grade bond arena, which likely means that most REIT bondholders will be offered prepayment at yield maintenance when REITs are privatized.

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