investment-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.

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.
References in periodicals archive ?
Approximately 77% 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.
While traffic and revenue levels at the facility continue to under-perform, adequate margins of protection remain at the investment-grade level.
Fitch maintains an investment-grade credit assessment on the two remaining loans.
The downgrade of the credit rating is a result of deterioration of the weighted average rating of the remaining 20 underlying investment-grade corporate bonds in the portfolio.
Following promising second quarter results when the par value of bonds affected by upgrades exceeded downgrades for the first time since before the recession, the third quarter's results were hampered by weakness in the investment-grade sector.
TRACERS are custody receipts representing direct ownership in a static, unlevered portfolio of investment-grade corporate bonds.
As a result, an investment-grade security supported by an eligible liquidity facility may, in fact, pose more risk than the risk commensurate with its rating because the potential loss to CP investors would occur when the security migrates to a non-investment grade rating and prior to the security's default.
In contrast, the investment-grade component of the U.
Core Investment Grade Bond Trust I are pass-through certificates representing direct ownership in a static, unlevered portfolio of 22 investment-grade corporate bonds with a final maturity of either Nov.
Approximately 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.
Of the four investment-grade credit assessed loans in the pool at issuance, one loan paid in full in July 2004 and two (22%) remain investment-grade.
NEW YORK -- Due mostly to lackluster rating performance at the investment-grade level, at the end of September, the U.