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Credit Analysis
Investment Grade
Investment Grade
Parent term
Credit Analysis
Bonds that are rated AAA to BBB- are generally considered to be "Investment Grade"
More about Investment Grade
Discusses The Following
Child Terms
Notes
Important of
Investment Grade
Rating
Many large managers (
Pensions
,
Insurance
Companie) are not legally allowed to own non-
investment grade
bonds
As such, this leaves are much smaller pool of
capital
for non-
investment grade
bonds
It also means that these
investors
have to sell any
bonds
that drop below
investment grade
! This could cause those
bonds
price
to drop even faster