Where All The Bonds Are Investment GradeLarry M. Elkin
There are two basic classes of bonds. The first is known asinvestment grade bonds.The agencies rated these issues as AAA, AA, A, or BBB. AAA is the highest-rated bond, while BBB is the lowest in class. The second category is what is known ashigh-yield bondsbecause they pay higher in...
Moody’s and Fitch. The highest-quality bonds are rated Aaa at Moody’s and AAA atS&Pand Fitch, with the scales declining from there. Moody’s ratings of Baa3 and BBB at S&P and Fitch are considered the lowest investment-grade ratings. Ratings below this are considered high-yield or junk...
解析 A High-yield bonds can be thought of as a hybrid between investment-grade bonds and equitysecurities. Their spread movements are less influenced by interest rate changes than are investment-gradebonds and they exhibit greater correlation with movements in equity markets.Section 7.1...
Theoretically, bonds with greater credit risks should offer higher yields after stripping away the impact of duration, but that isn't the case with high-yield munis. The yield per unit of duration is lower for high-yield munis than it is for investment-grade munis. This means that when ...
When interest rates are low, you can boost your bond yields by choosing reliable bonds with a lower investment grade. For example, owning bonds from lower-rated companies with a strong repayment track record could increase your average return without taking excessive risk. ...
For reference, investment-grade bonds are the least likely to default and have a credit rating of BBB or above (Standard and Poor’s) or Baa and above (Moody’s). Conversely, bonds below this threshold fall into the high-yield bond — otherwise known as junk bond — territory. ...
Demand for investment-grade corporate bonds remained robust during the first quarter despite a heavy new issuance calendar.Spreads for the Bloomberg US Corporate Investment Grade (IG) Index tightened by 9 basis points (bps) to finish the quarter at 90 bps. ...
Higher-rated bonds,investment-gradebonds, are safer and more stable investments tied to corporations or government entities. Investment-grade bonds contain “AAA” to “BBB-“ ratings.1Bond yields increase as ratings decrease. Most common "AAA" bond securities have been historically found in U.S....
Higher-rated bonds,investment-gradebonds, are safer and more stable investments tied to corporations or government entities. Investment-grade bonds contain “AAA” to “BBB-“ ratings.1Bond yields increase as ratings decrease. Most common "AAA" bond securities have been historically found in U.S....