Investment-grade refers to bonds rated Baa3/BBB- or better. High-yield (also referred to as "non-investment-grade" or "junk" bonds) pertains to bonds rated Ba1/BB+ and lower. You need to have a high risk tolerance to invest in high-yield bonds. Investment grade refers to the quality of a company's credit. To be considered an investment grade issue, the company must be rated at 'BBB' or higher by Standard and Poor's or Moody's. Anything What is an investment grade credit rating? Investment grade investments are financial instruments that have ratings ranging from AAA+ to BBB- under the terminology followed by S&P. It defines BBB- as the lowest investment grade as considered by market participants. A step down from the A rating tier, BBB- is the last tier at which a bond is still considered “investment grade.” Bonds rated below this level are considered “below investment grade” or, more commonly, “high yield,” a more risky segment of the market. An S&P credit rating is a letter grade. The best is "AAA." This rating means it is highly likely that the borrower will repay its debt. The worst is "D," which means the issuer has already defaulted. Medium-grade credit ratings, like BBB, are deemed investment-worthy. And that means it should be fairly straightforward to find investors willing to lend cash. While it's one of the weaker investment-grade credit ratings, a BBB score can still offer reassurance to investors that their money is likely to be fairly secure. Find out more about BBB Crucially, the share of the U.S. investment grade (IG) nonfinancial bond market that is rated BBB (i.e., the lowest credit rating still considered IG) has increased to 48% in 2017 from around 25% in the 1990s.
In a recession, BBB-rated bonds are the most vulnerable of all investment-grade bonds. According to Moody’s, 10% of BBB-rated corporate bonds are downgraded to “junk” status in a recession. May. 29 2019 — The 'BBB' rating category is the largest among currently outstanding U.S. corporate debt instruments rated by S&P Global Ratings. Investors have increasingly focused on the growth of this category, the lowest within investment grade ('BBB-' or above), because of the risk that this debt could be downgraded to speculative grade ('BB+' or lower). The S&P 500® BBB Rated Corporate Bond Index, a subindex of the S&P 500 Bond Index, seeks to measure the performance of U.S. corporate debt issued by constituents in the S&P 500 rated 'BBB'. The S&P 500 Bond Index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap U.S. equities.
22 Jan 2016 Santos notes that Standard and Poor's ratings Services (S&P) has revised Santos ' long-term senior unsecured credit rating from BBB to BBB-. „Investment Grade“ werden Anleihen mit guter bis sehr guter Bonität zusammengefasst. Er beschreibt somit alle Anleihen, die mindestens ein „BBB“- Rating (BBB+, BBB, BBB – = Lower medium grade). The higher the long-term rating of a corporation (tenant), the lower the risk associated with the investment and the
7 Nov 2016 A BBB rating is considered an investment grade rating by market participants and is less vulnerable to non-payment than speculative issues. 19 May 2017 In lifting the country's credit rating one notch to Bbb- and the outlook higher to stable, S&P said in a statement today that: Indonesian authorities
5 Mar 2020 "AAA" and "AA" (high credit quality) and "A" and "BBB" (medium credit quality) are considered investment grade. Credit ratings for bonds below 16 May 2019 Investment grade refers to the quality of a company's credit. To be considered an investment grade issue, the company must be rated at 'BBB' Just as individuals have their own credit report and rating issued by credit bureaus, bond issuers Investment-grade refers to bonds rated Baa3/BBB- or better. Crucially, the share of the U.S. investment grade (IG) nonfinancial bond market that is rated BBB (i.e., the lowest credit rating still considered IG) has increased to The ballooning size of the BBB-rated subset of the investment-grade (IG) credit market has prompted concerns about the credit quality of debt markets. Innocuous Fitch's credit ratings relating to issuers are an opinion on the relative ability of the categories 'AAA' to 'BBB' (investment grade) and 'BB' to 'D' (speculative grade ). Investment grade categories indicate relatively low to moderate credit risk,