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.

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Amazing built out of bank quality and security can be sold with or without the franchise.
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As our proxies for bank relationships we use six variables: a dummy variable (MULTIPLE) that equals one for firms with multiple-bank relationships, and zero otherwise; the number of banking relationships (NUM); the number of foreign-bank relationships (FNUM); the number of domestic-bank relationships (DNUM); the percentage of bank loans to total loans (BLR); and the reputation of the lending bank (REP), a proxy for bank quality.
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College of American Pathologists Outcomes Working Group, blood bank quality assurance questionnaire.
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Why do we need market quotations and expert conclusions if the body derives formula of bank quality reasoning from obscure criteria?