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.

References in periodicals archive ?
15 /PRNewswire/ -- In a year where the only categories that produced positive returns seemed to be money market funds and government-related bond funds, Seix Investment Advisors LLC was able to successfully navigate the market environment with three intermediate investment grade bond funds it sub-advises for the RidgeWorth Funds.
The RidgeWorth Investment Grade Bond, Investment Grade Tax-Exempt Bond and Maryland Municipal Bond Funds also received Lipper Performance Achievement Certificates for being the top performing fund in their categories for the 1- and 5-year(2), 10-year and 10-year(3) periods, respectively.
TORONTO, April 13, 2012 /PRNewswire/ - Ridgewood Canadian Investment Grade Bond Fund is pleased to announce that a cash distribution of $0.
So before seeking an investment grade bond rating, build up cash and improve liquidity.
TORONTO, March 15, 2012 /PRNewswire/ - Ridgewood Canadian Investment Grade Bond Fund is pleased to announce that a cash distribution of $0.
The current investment policy does not permit the purchase of non-investment grade bonds, and as a result, the company has significantly reduced below investment grade bond exposure from $87 million at the yearend 1990 to $32 million at Sept.
These positive rating factors are offset somewhat by historically high levels of dividends paid to its parent and higher than average investment leverage, with nearly 85 percent of surplus invested in equities and below investment grade bond holdings.
announced today that Lipper, a leading global mutual fund research firm, awarded the Phoenix Multi-Sector Short Term Bond Fund (NARAX) its Best Fund Over Ten Years award for its first-place performance within the Short-Intermediate Investment Grade Bond Fund category.
Salomon Brothers Broad- Investment Grade Bond Index" is a registered trademark of Salomon Brothers, Inc.
serves as the investment advisor for the Capital Growth Fund, Investment Grade Bond Fund, and the Investment Grade Tax-Exempt Bond Fund.
However, according to Managing Director Tara Innes, 'REIT bonds enjoy some key structural attributes which offer bondholders better prospects for prepayment than those available elsewhere in the investment grade bond arena, which likely means that most REIT bondholders will be offered prepayment at yield maintenance when REITs are privatized.
The $10 billion portfolio consists of 100 investment grade bonds (97 corporate bonds and 3 sovereigns).

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