crossover credit

Crossover Credit

A situation in which a bond is speculative grade but very close to investment grade or vice versa. It often refers to a split rating in which one credit rating agency gives the bond an investment grade rating and another gives it a junk rating. Generally speaking, regulators require bonds to receive investment grade ratings from two different agencies. Thus, crossover credit is often not strong enough to allow banks to invest in them.

crossover credit

Of or relating to a bond that straddles the gap between investment-grade and speculative. Crossover credits are generally rated low investment-grade by one rating agency and upper-grade speculative by another rating agency. See also split rating.
References in periodicals archive ?
Since Presley was the quintessential crossover artist--moving effortlessly and successfully from rock to blues to country to gospel--there is no reason to deny him a classical crossover credit. Unless we recognize the Eduardo de Capua hit as pop material to start with.
London: Fitch Ratings expects crossover credits and 'BB' issuers in the European high-yield bond market to lead the recovery in new issuance for 2016.
Fitch has released its latest bi-annual EMEA Fitch 50 report, offering in-depth analysis on crossover credits (rated between 'BBB-' and 'BB+') and those in the 'BB' rating category.
Brownstone Investment Group, LLC, trades and invests in High Yield, Distressed, and Crossover Credits. Silvio Petriello, of CB Richard Ellis represented the tenant.