The term
"bond rating" refers to a assessment or evaluation given to a bond, which is a form of debt issued by companies or governments to raise funds. This rating indicates the reliability and creditworthiness of the bond, helping investors understand the level of risk involved in investing in that particular bond. A high
bond rating suggests that the issuer is likely to repay its debt, while a low rating indicates higher risk and lower chances of repayment.
Full definition
(Note that a ratio of over 90 % has been identified by
bond rating agencies as being problematic for retaining our valued AAA - credit rating).
«We're one of the few cities in the country with a fully funded pension» with a healthy rainy day fund and a
AAA bond rating, she says.
The short - and medium - term «risk - free»
government bond rates for the G - 5 countries all currently reside in negative territory (see Figure 1).
We believe this will create consistent demand for
bond ratings as debt markets grow.
A very noisy, very public government oversight campaign to restore confidence
in bond rating agencies.
Stock yields rose above bond yields briefly at the end of 2008, but have remained below
bond rates for most of the time since then.
However, I still think the 5 -
year bond rates price in the risk of interest rate changes.
High
corporate bond rates raise interest costs for corporations, reducing profits, and raising discount rates (cost of equity capital).
Even the small number of mature charter schools that seek to float bonds in order to finance their facilities carry
low bond ratings relative to traditional public schools (see Figure 2).
It's certainly possible that increased competition from
higher bond rates will cause weakness in the equity market.
That should result in long -
term bond rates returning to more normal levels.
Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.
You can always find out a company's
bond rating by searching on the internet.
The
improved bond rating helps taxpayers because it allows the county to borrow money to fund capital projects at a lower cost.
Bond investors do their own due diligence, and do not depend
on bond ratings for their analysis.
When bond rates rise, which they have this year, these stocks tend to fall in price as fixed - income products, which are safer to begin with, become more attractive.
This will sound weird, but I am not as much worried about government
bond rates rising, as I am with credit spreads rising.
Municipal bond ratings are conducted in a similar fashion to bond offerings by the federal government and private corporations.
We provide a selection of the current best fixed -
rate bond rates for you to compare.
If bond rates do get to far out of hand I feel that well be back to the dark ages.
Bond investors have an advantage when
using bond rating as an investing guide to construct a balanced portfolio that stresses both safety and return.
Recently, we have seen some large and abrupt movements in currencies, commodity prices and even
sovereign bond rates.
In order to simplify comparison of different bonds, bond - rating agencies make it their specialties to
issue bond ratings for different bonds.
On the other hand, fixed income doesn't offer enough return to help companies make up for the investment losses of the past few years, particularly with
bond rates dropping.
Bond ratings make it easy for you to understand the default risk of a bond, while still taking into account all the other risks.
As one goes further down the yield curve in maturity, the correlations weaken, but still remain pretty tight
among bonds rated single - A or better.
Personally, I would be comfortable with most government, industrial and utility
bonds rated single - A or better.
We live in an era of lower returns,
because bond rates are lower and interest rates are lower generally.
That would put a floor on five - year mortgage rates of about 2.6 % — assuming the five - year
bond rate doesn't fall any further.
A budget deficit of $ 138 million, three double - digit tax increases in a row, out of control spending and
bonds rated near junk.
Since fixed mortgage rates
follow bond rates this could mean further reductions in already ridiculously low fixed mortgages.
Yes, some high - quality corporate and
mortgage bond rates will be pulled down with it, but so will discount rates for liabilities.
About half of institutional investors could already
accept bonds rated below A - in their portfolios.
As
bond rates start to rise, it's indeed possible that some income investors will shift away from dividend stocks back toward fixed - income investments like bonds and bank CDs.
Bonds rated C or D should be avoided, as they are considered unsafe.
She faced down critics to make difficult budget cuts, even boosting the city's
bond rating slightly against the tide of fiscal crisis.
If you can demonstrate financial strength by providing strong business financials, it can drastically lower your
performance bond rates.
Phrases with «bond rating»