Investment-grade bonds


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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 BAA or higher. Related: High-yield bond.

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.
References in periodicals archive ?
Life Insurance Company of Virginia maintains a favorable liquidity position as operating cash flow, investment-grade bonds and short-term investments totaled $5.
The company's liquidity is supported by substantial operating cash flow and over $24 billion of investment-grade bonds and short-term securities held at year-end 1991.
life insurers took a beating from corporate credit defaults in 2002, with the deterioration in investment-grade bonds (which make up about two-thirds of the industry's total investment portfolio) surpassing even Enron-tainted 2001.
7, 2003--Standard & Poor's has released a CDO Manager Focus report for Conning Asset Management's Investment-Grade Bonds asset class.
CNA maintains a strong liquidity position as operating cash flow, investment-grade bonds, cash and short-term investments totaled $3.
Strong operating cash flow, combined with investment-grade bonds, cash and short-term holdings totaling $12.
Below investment-grade bonds, in particular, are appealing given the current interest rate environment.
Over 85 percent of the group's assets are invested in investment-grade bonds.
Over 60 percent of the company's assets are conservatively invested in investment-grade bonds and the balance of the investment portfolio is invested in high-quality equities.
In contrast to the negative activity of last year, a significant number of first quarter downgrades were directly related to real estate performance-and many were initiated on investment-grade bonds, according to Standard & Poor's Ratings Services' most recent Structured Finance Global Ratings Roundup Quarterly.
Over 70 percent of the company's assets comprise single A or better investment-grade bonds.
At the same time, an increase in lowered ratings on investment-grade corporate obligors during the second half of the year played a significant role in stressing the ratings of CBO transactions collateralized by investment-grade bonds, as noted in the article, "U.