investment-grade
Safe bond classification
Investment-grade describes bonds or other debt securities rated as relatively safe by credit rating agencies—unlikely to default.
The term distinguishes lower-risk investments from "junk bonds" or "high-yield" debt, which offer higher returns but greater risk of loss.
The company's bonds were downgraded from investment-grade to junk status.
The threshold typically falls at BBB- (Standard & Poor's) or Baa3 (Moody's).
Debt issued by businesses
- credit ratingAssigned measure of borrower reliability
- fixed incomeStable recurring revenue
- AAATop credit rating
- BBBConsumer protection nonprofit
coupon · yield · maturity · bond market · treasuries · municipal bonds · issuance · bondholders
Assigned measure of borrower reliability
BBB · creditworthy · rating agency · credit analysis · financial stability · fallen angel · credit assessment
Added cost for better
- high-qualityExceptionally well-made
- reliableConsistently performing as expected
- secureProtected from harm
- stableSecure and unchanging
low-risk · blue-chip · sound · solid · trustworthy · dependable · safe · established
corporate bonds
Debt issued by businesses
- credit ratingAssigned measure of borrower reliability
- fixed incomeStable recurring revenue
- AAATop credit rating
BBB · coupon · yield · maturity · bond market · treasuries · municipal bonds · issuance · bondholders · interest rate
credit rating
Assigned measure of borrower reliability
A · BBB · creditworthy · rating agency · credit analysis · financial stability · fallen angel · credit assessment
premium
Added cost for better
- high-qualityExceptionally well-made
- reliableConsistently performing as expected
- secureProtected from harm
stable · low-risk · blue-chip · sound · solid · trustworthy · dependable · safe · established · reputable
- safe investmentsCD, bonds, treasury bonds, certificate of deposit, savings bond
investment-gradejunk
Worthless discarded items
junk bond · high-yield · speculative · high-risk · fallen angel
investment-gradehigh-risk
Involving significant danger
uninvestable · risky · speculative · unsafe · volatile
investment, grade, invest, investing, invested, investor, investors, investments, reinvest