Fixed Income

Investment Grade

Definition

What is Investment Grade?

A credit-rating category generally associated with lower default risk than speculative-grade debt.

Example in practice

Many regulated portfolios limit bond holdings to investment-grade issuers.

Keep learning

A debt security through which an investor lends money to an issuer in return for promised payments.

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

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