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High-Grade

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia 0.07 sec.
High-grade
Credit quality of AAA or AA.

high-grade
Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. Compare investment-grade.

High-Grade
Describing an investment-grade bond with a particularly high rating. Bonds rated Aa3 by Moody's or AA- by S&P or Fitch or higher are considered high-grade. Like all investment-grade bonds, high-grade bonds are considered sufficiently low-risk that the law allows banks to invest in them. In addition to being low-risk, high-grade bonds are low-return, greatly reducing the cost on the issuer. American Treasury and many municipal bonds are high-grade. See also: Junk.


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