A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment-grade bonds as BBB or higher, and Moody's classifies investment grade bonds as BAA or higher. Related: High-yield bond.
Nearby TermsInvestment Valuation Model (IVM) Investment value Investment-grade bonds Investments Investor
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University