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Investment grade |
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Investment gradeA credit rating given to a government or coporate bond which indicates that the agency giving the rating (Standard & Poor's, Moody's or Fitch) thinks the issuer has strong creditworthiness.The grades used by two of the leading agencies are as follows:Moody's Aaa / S&P AAAThe highest-quality, lowest-risk bondsMoody's Aa / S&P AAHigh-quality debt obligations with minimal repayment riskMoody's A / S&P AQuality bonds with a strong capacity to pay interest and principal which are somewhat susceptible to adverse economic conditionsMoody's Baa / S&P BBBQuality bonds with a adequate capacity to pay interest and principal which are more vulnerable to adverse economic conditions bondsMoody's Ba / S&P BBMedium-grade bonds with few desirable characteristicsMoody's B / S&P BSpeculative bonds with a major degree of risk in adverse economic conditionsMoody's Caa / S&P CCCIssuers in poor standingMoody's Ca / S&P CCIssuers may be in defaultMoody's C / S&P CIncome bonds on which no interest is being paidS&P DBonds in default All those at Baa/BBB or above are adjudged 'investment grade'.Similar MatchesPassive investment strategyPassive investment strategySee: Passive investment management. Investment managementInvestment managementThe process of managing money. Also called portfolio management and money management. Alternative investmentAlternative investmentInvestment in items other than stocks, bonds or other securities. Wine, art, antiques are examples. Association of Investment Trust CompaniesAssociation of Investment Trust CompaniesAn association formed in 1932 to represent the interests of investment trust companies. Its main aims are the protection and promotion of the interests of its members and their shareholders. It also provides information on the composition and performance of investment trusts.Contact the AITC by phone on +44 (0)20 7282 5555 or by post at Durrant House, 8-13 Chiswell Street, London, EC1V 4YY or online at http://www.aitc.co.uk. ReinvestmentReinvestmentUse of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors. Further SuggestionsCapital investmentCommunity Reinvestment Act (CRA) Investment Valuation Model (IVM) Personal Investment Authority Brown field investment Independent investments Direct investment Investment club Normal investment practice Passive investment management Trade-related investment measure Mutually exclusive investment decisions Legal investments Bank Investment Contract (BIC) Foreign investment risk matrix (FIRM) Diversified investment company Green field investment Investment software Investment certificate Return on investment (ROI) ethical investment Registered investment company Expected return on investment Net investment income per share Unamortized premiums on investments |
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