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Credit Quality
A measure of a bond issuer's ability to repay interest and principal in a timely manner.
Credit Quality ...
Credit quality
A measure of the likelihood of default. Rating agencies assign letter designations such as AAA, AA, and so forth.
Credit rating ...
Credit Quality Slowly Improving at Regional Banks
Regional banks are benefiting from higher credit quality, but concerns about the mortgage market, commercial real estate, and regulation loom. (05:46) ...
credit quality encompasses both the likelihood of a counterparty defaulting as well as possible recovery rates in the event of a default.
Credit quality also has an impact on the interest rate of a bond. Issuers with strong credit quality can pay a lower interest rate because their bonds have a low risk of default.
Credit quality of AAA or AA.
High-grade bond
A bond with Triple-A or Double-A rating in Standard & Poor's, or Moody's rating system.
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Average Credit Quality
A measure of the creditworthiness of the debt securities held by a debt fund. It is the weighted average of the credit ratings of the securities given their relative weights in the portfolio.
Although credit quality is an important element in an investment decision, it is not the only or even the most important element. Ratings opinions are not investment recommendations.
HIGH GRADE - credit quality of AA or AAA
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Distribution by credit quality
Classification of a portfolio's securities according to credit rating.
Distribution by issuer
Classification of a portfolio's holdings by type of issuer or type of instrument.
An evaluation of credit quality Moodys, S&P, and Fitch Investors Service give to companies used by investors and analysts.
Rational expectations ...
An evaluation of credit quality of a company's debt issue by Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.
Ratio analysis ...
Distribution by Credit Quality This breakdown of a porfolio's securities by credit rating can help in gauging the risk that returns could be affected by defaluts or other credit problems.
The grading of the credit quality of a debt obligation.
Rating Agencies
Companies that grade the credit quality of debt obligations.
Ratings An evaluation of credit quality of a company's debt issue by Thomson Financial BankWatch, Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.
Ratings An evaluation of credit quality of a company's debt issue by Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.
Ratings An evaluation of credit quality Moody's, S&P, and Fitch Investors Service give to companies used by investors and analysts.
Technician Related: Technical analysts TED spread Difference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality. Teeny 1/16 or 0.
credit quality A measure of the safety of a bond and the likelihood of default, based on the issuer's financial condition.
Rating An evaluation of credit quality. Moody's, Standard & Poor's, and Fitch Investors Service issue ratings to companies used by investors and analysts.
CBOs are similar in concept to Collateralized Mortgage Obligations (CMOs), but differ in that CBOs represent different degrees of credit quality rather than different maturities.
For investors, it is very important to realize that the underlying transaction that gives rise to a BA is almost completely irrelevant to the credit quality or the liquidity of the instrument.
In comparing bonds, it usually refers to issues of different credit quality since issues of the same maturity and quality would normally have the same yields, as with Treasury securities, for example.
In this strategy an investor would purchase a bond that is a bit lower in credit quality, perhaps a BBB credit rating or lower.
Prior to 1977, every junk bond was a previously investment grade bond for a company that had saw its credit quality erode. In that year, Bear Stearns underwrote an original-issue bond that started with a junk rating.
A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt.
The graphical depiction of the relationship between the yield on bonds of the same credit quality
but different maturities. Related: term structure of interest rates. Harvey (1991) finds that the inversions of ...
These measures of CREDIT quality are mostly offered on marketable GOVERNMENT and corporate DEBT. A triple-A or A++ rating represents a low risk of DEFAULT; a C or D rating an extreme risk of, or actual, default.
A bond whose credit quality is considered to be among the most secure by any independent bond-rating agency. A rating of Baa or higher by Moody's Investors Service or a rating of BBB or higher by Standard & Poor's is considered investment grade.
In the case of an associated takeover development, such as additional debt issuance, risk that a bond's credit quality will decline and a lower rating will be justified.
Depending on the style box, the vertical and horizontal axis will illustrate factors such as capitalization, investment style, maturity, credit quality or goals that the asset may or may not help the investor or investment company achieve.
WARF - Weighted Average Rating Factor - A measure that is used by credit rating companies to determine the credit quality of a portfolio.
Bonds are often divided into different categories based on tax status, credit quality, issuer type, maturity and secured/unsecured (and there are several other ways to classify bonds as well). U.S.
High-yield bonds, sometimes called junk bonds, are issued by corporate entities with below investment grade credit quality. Convertible bonds are a form of corporate bonds that may be converted into stock upon the satisfaction of certain requirements.
Rating agency
Independent agencies such as Moody's, Standard and Poor's and Fitch IBCA that assess the credit quality and likelihood of default of an issue or issuer and subsequently assign a rating code to that issue or issuer.
Blume, Marshall E., F. Liff, and A. C. MacKinlay. 'The Declining Credit Quality of U.S. Corporate Debt: Myth or Reality.' Journal of Finance 53, no. 4 (2000): 1389-1413.
Designations used by credit rating agencies to give relative indications of credit quality.
Realized Profit (or Loss)
Profit or loss resulting from the sale or other disposal of a security.
A swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but offers a higher yield.
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Moody's Investors Service: A rating agency that analyzes the credit quality of bonds and other securities.
credit spread: The difference in yield between two bonds of similar maturity but different credit quality.
creditor: A person or entity who is owed payment.
Structured Asset Trust Unit Repackagings
Definition: [crh] A synthetic security linked or weak-linked to underlying collateral. Ratings usually reflect the credit quality of the underlying securities.
Collateralized Bond Obligation (CBO): Securities issued against a portfolio of bonds with different degrees of credit quality.
Taxable Equivalent Yield - A yield an investor would be required to earn from a taxable security to equal the value of a tax-exempt security of the same credit quality.
Comaker - a person, other than the borrower, who signs a note in order to give additional protection to the creditor granting the loan, because of the uncertain credit quality of the borrower.
The ability of an asset purchaser to sell an asset or loan back to the original seller should the credit quality of that asset deteriorate.
Recovery rate of a loan in default
1 minus the percent loss given default ...
For example, if an institution holds a loan that declines in market price because interest rates go up, but has no change in cash flows or credit quality, some systems do not recognize a loss.
Yield
This is the basis on which a bond is priced and sold. It reflects the value of the bond giving consideration to the length of time to maturity, credit quality of the issuer/guarantor, and general market conditions.
A collateralised bond obligation (CBO) is similar in concept, except that the security is made up of bonds of varying credit quality.
Was the company hiding a problem or just following the rules as they'd be set out? To avoid future problems like this, the FASB is studying the issue in a project called Disclosures about Credit Quality and the Allowance for Credit Losses.
At this stage further entities may participate in the process: a rating agency to assess the credit quality and other characteristics of the securities issued by the SPE; ...
Investment Grade - Bonds whose credit quality is considered to be among the highest by independent bond-rating agencies. Standard and Poors assigns investment grade ratings of "AAA", "AA", or "BBB", for example.
Substitution swap A swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but offers a higher yield.
 See also: Banks, Values, Expense, Saving, Yield curve
  
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