Investment Grade Bonds

Bonds that have a low risk of default. These bonds are said to be the bonds with the highest credit ratings (besides treasury bills that are not rated) meaning that they have the lowest risk of default.  Ratings for investment grade usually rang from AAA (lowest chance of default) to BBB (higher chance of default but still considered investment grade). Ratings are performed by private agencies such as Standard & Poor’s, Moody’s, and Fitch.

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