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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 MatchesInvestment incomeInvestment incomeIncome, paid from an investment, such as dividends and interest. Investment agreementInvestment agreementAn contract specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project. Real estate investment trustReal estate investment trustIn the US, a publicly traded investment trust which invests the capital of its shareholders in real estates.Some REITs, called 'Equity Reits', take equity positions in real estate, receiving income from rents and capital growth from selling buildings.Others specialise in lending money to property developers, their income coming from interest payments on those loans.Hybrid REITS do a mixture of equity investing and property lending.REITs enjoy special tax advantages provided 75% or more of their income comes from property and 95% or more of their net earnings is distributed to shareholders annually. Brown field investmentBrown field investmentFDI that involves the purchase of an existing plant or firm, rather then construction of a new plant. Contrasts with green field investment. Community Reinvestment Act (CRA)Community Reinvestment Act (CRA)Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. Further SuggestionsDirect investmentreturn on investment Legal investments Association of Private Client Investment Managers and Stockbrokers local authority investment Capital investment investment Ethical Investment Research Service Target investment mix Passive investment management Investment opportunity set Undertakings for Collective Investment in Tradable Securities Association of Unit Trusts and Investment Funds Reinvestment risk Investment management Unit investment trust Investment product line (IPL) Income investment company Tradepoint Investment Exchange ethical investment Trade-related investment measure Investment Company Institute (ICI) approved investment trust Mutually exclusive investment decisions Real Estate Investment Trust (REIT) |
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