Investment-Grade Bond

Investment-grade bond is a bond rated within the investment-grade categories of a recognized credit-rating organization.

Why this matters to income investors

A rating category suggests lower assessed credit risk, not a promise of payment or price stability.

How to use investment-grade bond in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.