Definition
Investment grade
Refers to bonds rated in the top four rating classifications, or a rating of BBB or higher. Investment grade bonds are unlikely to miss interest payments or go into default.
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Investment grade
Bonds considered suitable for purchase by prudent investors. Bonds rated Baa3 and above by Moody's and BBB- and above by Standard & Poor's and Fitch Ratings are considered investment grade.
Junk bond ...
Investment Grade: Investment-grade obligations are those rated at the time of purchase AAA, AA, A or BBB by S&P, Aaa, Aa, ...
Investment grade Typically referring to a bond that has a rating of at least BBB by S&P or Baa by Moody's. See junk bond.
Investment objective Financial goal of an investor " used to determine appropriate investments.
INVESTMENT GRADE - A credit designation given municipal securities that have a high probability of being paid. Bonds rated "BBB" or higher by Standard & Poor's or Fitch Ratings or "Baa" or higher by Moody's Investors Service, Inc.
Investment grade
An assessment of a bond by a credit-rating firm that indicates whether investors are expected to receive principal and interest payments in full and on time.
Investment Grade Securities Securities rated AAA to those rated BBB, which includes securities determined to have the lowest risk of default to those with a reasonable degree of default risk.
Investment Grade Bond: Bond rated with one of the top four grades by a rating service like Moody's and Standard & Poor's, indicating a high level of creditworthiness.
Investment grade
A bond that is assigned a rating in the top four categories by commercial credit rating companies. Related: High-yield bond
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Investment grade
A bond whose credit quality is considered to be among the most secure by any independent bond-rating agency.
Investment Grade
A bond with an Standard and Poor's rating of BBB- or above or a Moody's rating of Baa3 or above.
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Investment Grade - A term referring to a top grade, best rated bond. A "blue-chip" stock might also be referred to as investment grade.
Investment grade securities: Securities rated by a nationally recognized statistical rating organization in one of its four highest generic rating categories.
Investment Grade - High Grade
Moody's - Aa1, Aa2, Aa3
These bonds are judged to be of high quality by all standards. Margins of protection may not be as large as in Aaa securities.
S&P - AA+, AA, AA- ...
LQD - Investment Grade Corporate Bonds -1% (yield 5.7%)
IEF - 7-10yr Treasuries 6.65% (yield 3.7%)
TIP - Treasury Inflation Protected Bonds 7.87% (yields 5.6%) ...
Moody's investment grade
A rating of one through four assigned by Moody's Investment Service to municipal short-term bonds.
Investment Grade
A bond that is rated within the top four categories by Moody's or Standard & Poor's.
See: Junk Bond; Legal List; Moody's Investment Grade; Rating; Standard & Poor's Corporation ...
INVESTMENT GRADE
Bonds whose issuers are rated AAA to BBB for safety and ability to repay principal by Standard & Poor's or Moody's Investors Service.
Investment grade bond Considered among the highest quality bonds based on safety of principal and dependability of interest payments.
Non-investment grade issues, on the other hand, are those that have been assigned a rating of BB or lower. These obligations possess a much higher risk for default or loss of principal.
InterNotes are investment grade, medium-term notes, offered in minimum denominations of $1,000 to retail investors. InterNotes represent the debt of each respective issuer and are subject to credit and secondary market risk.
PIMCO Investment Grade Corp Bd Instl (PIGIX) - with $5.8 billion in assets, this is the largest of the three funds reviewed. This intermediate term bond fund's focus is on U.S. corporate bonds with an average rating of BBB.
High yield debt (non-investment grade or junk bond) is a business term referring to a corporate debt instrument, usually a bond, ...
If munis aren't your style, though, you'll find several other bond funds, including corporate bonds via the iBoxx Investment Grade Corporate ETF (LQD) and the JPMorgan USD Emerging Markets ETF (EMB).
Usually the lowest investment grade rating assigned to a security or insurance carrier. This rating signifies that the issuer or carrier is relatively stable with a moderate chance of default.
Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or junk bonds.
0% Investment Grade Corporate Bonds 1.9% Mortgage-Backed Securities 1.7% Emerging Market Debt 1.4% Sovereign Debt External Currency 0.8% Corporates External Currency 0.6% High Yield Corporate Bonds 0.3% Cash & Other Securities 1.
For Fixed Income, focus on Investment Grade securities, with above average but not 'highest in class� yields. With Variable Income securities, avoid purchase near 52-week highs, and keep individual holdings well below 5%.
A distinction is made between top-quality bonds (investment grade) and speculative-grade bonds (high yield oder junk bonds). A downgrading of a borrower to less than 'investment grade' will usually result in steep price markdowns on the bonds.
A collateralized bond obligation is a bond understood to be of investment grade. The bond obligation is backed with the use of a pool of junk bonds, which are generally not considered to be investment grade.
Nationally recognized rating agencies then assign credit ratings to the various bond classes ranging from investment grade (AAA/Aaa through BBB-/Baa3) to below investment grade (BB+/Ba1 through B-/B3) and an unrated class which is subordinate to the ...
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The yields we use are estimates; it is not uncommon for the spread of a given investment grade to swing 50 to 150 basis points. So a 'low' grade might be showing an investment value that is 5% higher than the current price.
investment grade, status. These bonds become fallen angels because the company has added too much debt or because sales have fallen drastically and no longer enable the company to sufficiently cover its interest payments.
... securities: Stocks/Equities and Bonds/Income Securities. Most Investment Grade securities fit comfortably into one of these two classes. Diversification ...
4. Asset Allocation: Investing by the Numbers
(Articles/Personal Finances) ...
Debt issued by a company whose credit rating is below investment grade (below BBB by Standard and Poor's or Baa by Moody's). Junk bonds carry a much greater risk of default than investment-grade bonds, but also offer greater potential returns.
Bonds that at the time of Issue were considered Investment grade but that have dropped below that rating over time.
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00 per share are marginable at Schwab, as are most investment grade fixed income securities, and mutual funds. However, exchange and listed stocks must be $5.00 or greater for initial purchases on margin.
- iShares Lehman Aggregate Bond (AGG)
- iShares iBoxx $ Investment Grade Corporate Bond (LQD)
- iShares Lehman TIPS Bond (TIP)
- Total Bond Market ETF (BND) ...
* Provide a tool for traders who want to profit from a near-term outlook on investment grade credit, just as one might with TED spread constructed with U.S. Treasury and CME Eurodollar futures ...
The confidence index (aka confidence indicator) is the ratio of high-grade corporate bond yields over other investment grade bond yields or stock yields. Barron's publishes a number of confidence indicators every week.
Junk bonds are bonds issued by companies whose credit has been rated non-investment grade quality by the major bond rating agencies.
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Fallen angels
Bonds that at the time of issue were considered investment grade but that have dropped below that rating over time.
A very risky bond with a bad credit rating it usually has a lucrative yield but is not considered investment grade due to the amount of the risk.
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HIGH YIELD BOND
High-yield bonds may be bonds whose ratings from independent rating services are below investment grade.
Debt obligations issued by corporations as an alternative to offering equity ownership by issuing stock. Debt risk is judged by rating agencies. Bonds with ratings from BBB and higher are called ‘Investment grade', ...
Debt risk is judged by rating agencies. Bonds with ratings from BBB and higher are called ‘Investment grade’, bonds with lower ratings ‘High Yield bonds’ or ‘Junk bonds’.
Rating - The alphabetical designation attesting to the investment quality of a bond. Treasury and agency securities are AAA-rated, said to be "investment grade." ...
Their ratings range from AAA (highly unlikely to default) to D (in default). Bonds rated B or below are not investment grade--in other words, institutions that invest other people's money may not buy them under most state laws.
Bonds rated BBB by Standard & Poor's (Baa by Moody's) or better are considered 'investment grade' suitable for purchased by fiduciaries, banks, and insurance companies. Bonds given lower ratings are considered speculative investments.
Your choice in bonds range from the highest credit quality, usually a U.S. Treasury security, which is backed by the U.S. Government, to bonds that are below investment grade and considered speculative, or "junk bonds".
Investor"s Service evaluate bond issuers" financial strength and cash flow with respect to projected interest payments and principal repayment. Ratings range from AAA or Aaa (highest) to D (in default). Bonds rated below B are not investment grade ...
Related: Premium Investment analystsRelated: Financial analysts Investment gradeA bond that is assigned a rating in the top four categories by commercial credit ratrating companies.
In the case of investment grade loans, this is less of a problem than it is with problem loans. Risk Management: Comment: Agencies, such as Moody's Investors Service and Standard and Poor's Corp., assign credit ratings.
 See also: Investment, Market, Bonds, Interest, Stock
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