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Investment-Grade

   Also found in: Wikipedia 0.02 sec.
investment-grade
Of, relating to, or being a bond suitable for purchase by institutions under the prudent man rule. Investment-grade is restricted to those bonds graded BBB and above by Standard & Poor's and graded Baa3 and above by Moody's. Also called bank-grade. Compare high-grade.

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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Fitch bond rating agency could revoke Mexico's investment-grade status if steps are not taken to complete structural reforms, Fitch Ratings Latin American Director William Hayes told local press in September.
For this reason, most bond deals are given below investment-grade ratings or are left non-rated.
Over 90% of the combined pool participants are of investment-grade quality as exhibited by public investment-grade ratings from one of the nationally recognized rating agencies.
 
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