Investment grade

(redirected from Investment Grade Debt)

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.

References in periodicals archive ?
The Fund invests primarily in below investment grade debt and equity.
We allocate capital within established capital structure targets intended to maintain investment grade debt ratings and a financial leverage ratio, which we define as net debt to trailing 12 months EBITDA, of between 1.
7 million of investment grade debt in four classes and, in addition, 91.
THE owner of Europe's largest coal-fired power station asked investors for pounds 100m in order to preserve its investment grade debt rating.
THE owner of Europe's largest coal-fired power station asked investors for pounds 100m yesterday in order to preserve its investment grade debt rating.
The owner of Europe's largest coal-fired power station have asked investors for pounds 100 million in order to preserve its investment grade debt rating.
If it seems that I've ignored the public investment grade debt market, it's because only the largest, most conservatively capitalized middle-market companies with strong records have the BBB or better ratings necessary to tap this market.
The three senior debt capital markets appointments include Jennifer Powers, managing director and joint head of Investment Grade Debt Capital Markets; Richard Smith, managing director and head of Leveraged Debt Capital Markets and Victor Forte, managing director and joint head of Syndicate.
Lower-rated debt securities (commonly known as "junk bonds") involve greater risks than investment grade debt securities.
Jean-Marc Chapus and Mark Attanasio have built one of the leading alternative asset management firms specializing in below investment grade debt securities in North America, and we are excited to extend the firm's offering to all companies looking for capital to grow their businesses," said Mr.
An aggregate of 338 million of investment grade debt in four classes and, in addition, 87 million of non-investment grade mezzanine and subordinated notes were issued.
The bank will reportedly be merging the investment grade debt and asset backed securities trading units and Nick Waring will lead the merged unit.

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