Investment-grade bonds

Investment-grade bonds

A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment-grade bonds as BBB or higher, and Moody's classifies investment grade bonds as BAA or higher. Related: High-yield bond.

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.
References in periodicals archive ?
The investment-grade bonds were offered to allow the firm to restructure debt and bolster its capital for future growth.
Dollar-denominated investment-grade bonds have been steadily losing value.
What I expect we'll see is more of a carrier shift to lower-rated investment-grade bonds and a slight increase in stocks and junk bonds.
It's also worth remembering that high-yield bonds tend to be of shorter duration (or shorter weighted-average maturity) than investment-grade bonds, and this means that they should not suffer too much when interest rates do begin to rise from what are very low levels.
Call options on corporate bonds are now mostly observed on speculative-grade bonds and on long-term investment-grade bonds (e.
The Core Plus Bond fund will invest at least 65 percent of its assets in investment-grade bonds and also have the ability to invest up to 35 percent of its assets in high-yield and emerging market debt.
Top-quality bonds are referred to as investment-grade bonds.
It incorporates all of the most important income-producing asset classes in one investment option including high yield bonds, dividend-paying stocks, real estate investment trust equities and investment-grade bonds.
Designed for long-term investors seeking current monthly income or portfolio diversification, the Westcore Plus Bond Fund seeks long-term total rate of return, consistent with preservation of capital, by investing primarily in investment-grade bonds of varying maturities.
The consolidated risky asset ratio (below-investment grade bonds, unaffiliated common stock and troubled real estate in relation to TAC) of about 59% at June 30, 2005 was notably lower than the industry average, in large part due to the companies' investment focus on publicly traded investment-grade bonds.
The management team works with the municipal credit research team to look for lower-rated investment-grade bonds that appear undervalued and likely to appreciate.
31, 2004, was notably lower than the industry average, in large part due to the combined companies' investment focus on publicly traded investment-grade bonds.