nonrated bonds

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Nonrated Bonds

Bonds with issuers that have not received a credit rating from one or more of the major credit rating agencies. A bond may be nonrated for a number of reasons, including simply not wishing to pay the fee to the credit rating agency. A nonrated bond is not necessarily risky, but they cannot be investment-grade.

nonrated bonds

See not rated.
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References in periodicals archive ?
A partially offsetting rating factor is the increased investment risk derived from higher exposure to non-rated bonds. A.M.
Consequently, bond insurers limit the amount of lower-rated or non-rated bonds they will underwrite.
As predicted, bond yields are positively related to bond ratings ([b.sub.3] > 0), non-rated bonds have higher average yields ([b.sub.4] > 0), callable bonds have higher average yields ([b.sub.5] > 0), and yields increase with the years-to-maturity ([b.sub.8] > 0).
The higher yield on non-rated bonds is consistent with the results from Model (14) discussed above.
Total risky assets, including listed and unlisted equities, investment funds, below-investment-grade and non-rated bonds, and investment in associates, increased to about 44.1% of FWD Limited's shareholders' equity on a consolidated basis at end-1H17 (end-2016: 35.3%), below the ratio guidelines for an IFS 'A' rated insurer.
Risky assets, including stocks, property, and non-investment-grade and non-rated bonds, represented about 69% of adjusted equity, generally in line with Fitch's median ratio for an 'AA' IFS Rating.

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