INVESTMENT-GRADE BONDS - A bond that is assigned a rating in the top four categories by commercial cred...
INVESTMENT-GRADE CMBS - Commercial mortgage-backed securities with ratings of "AAA," "AA," "A" or "BBB" ...
Investment-grade bonds
A bond whose credit quality is considered to be among the most secure by any independent bond-rating agency.
Investment-Grade Bonds Bonds rated Baa or above.
IP (Inflationary Premium) Additional return required to compensate asset holders for inflation uncertainty.
Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved.
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Unlike investment-grade bonds, the low-grade variety is not backed by assets or cash-flow statements. Companies frequently issue these bonds as a way of borrowing money.
Also called below investment-grade bonds, these bonds are generally issued by a corporation of questionable financial strength or without a proven track record.
Institutional investors generally place restrictions on investing in noninvestment-grade bonds.
Bonds rated Ba3/BB- are generally considered speculative in nature and are not considered to be investment-grade bonds suited for people wishing to avoid the risk of losing their principal.
investment-grade bonds , as rated by Standard & Poor's or Moody's, usually qualify as legal investments. Guidelines designed to protect investors are set by the state in which the fiduciary operates.
Angel Bond - A slang term for investment-grade bonds. An angel bond pays a lower interest rate due to the higher credit rating of the issuing company.
As junk bonds are perceived to be riskier than other types of debt, they typically trade at higher yields-that is, higher rates of return-than investment-grade bonds. Over the past twenty years, this difference, or spread, between junk bonds and U.S.
A fund that buys lower-grade bonds may provide substantially more income than a fund buying investment-grade bonds. But the same fund may also put your principal, or investment amount, at substantial risk.
Income in respect of a decedent ...
Salomon Smith Barney's market-weighted index that contains approximately 4,700 individually priced investment-grade bonds rated BBB or better. The index includes US Treasury/agency issues, mortgage passthrough securities, and corporate issues.
An investor is allocating her assets to various asset classes-domestic equities, foreign equities, investment-grade bonds, junk bonds, etc. She chooses an asset allocation based on a prospective assessment of expected returns and risk.
Funds may vary from very aggressive and volatile, such as those specializing in the markets of developing countries, to conservative, such as those that buy only investment-grade bonds or blue chip stock.
If you've bought highly rated bonds, called investment-grade bonds, you'll rarely find the issuer's credit rating changing dramatically enough to affect your investment's return. However, unless you've bought U.S.
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.
Other types of bond funds invest in corporate bonds. These can be categorized into investment-grade bonds and junk bonds. Although considered a high risk investment, junk bonds promise greater returns if managed well.
The CBO structure creates at least one tier of investment-grade bonds, thus providing liquidity to a portfolio of junk bonds. CBOs are a type of CDO. See collateralized debt obligation (CDO), special purpose vehicle and waterfall.
Core Plus
A fixed-income style that permits managers to add instruments with greater risk and greater potential return, such as high yield, global, and emerging market debt, to their core portfolios of investment-grade bonds.
Issuers offset the higher risk of default on junk bonds by offering substantially higher interest rates than are being paid on investment-grade bonds. That's why junk bonds are also known, more positively, as high-yield bonds.
Collateralized Bond Obligation (CBO) Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved.
 See also: Saving, Banks, Expense, Bills, Mergers
  
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