Bond Investing And Their Ratings
Bond investing relies on understanding about bonds and their values.
When you buy a bond it is given a rating with AAA bonds being the highest rating and also considered the safest. Usually, the lower the rating on the bond the bigger the reward but also the greater the risk.
What are junk bonds?
These are bonds that are considered to be very risky and probably not wise for a person new to investing.
|Moody's Ratings||Standard & Poor's Ratings||Risk/Reward|
|Aaa||AAA||Investment Grade High|
|Aa||AA||Investment Grade Medium High|
|A-1 / A||A||Investment Grade Medium Low|
|Baa-1 / Baa||BBB||Investment Grade Low|
|B / Caa||B / CCC / CC||Junk|
|Ca / C||D||Junk|