Sentences with phrase «grade issuer credit ratings»

Not exact matches

These are bonds from issuers whose risk levels prevent them from qualifying for «investment grade ratings» by the primary bond credit rating agencies.

Below investment grade issuers, whose credit risks rating agencies view as a higher concern, and which comprise the S&P U.S. Issued High Yield Corporate Bond Index, are yielding 4.66 % (YTW).

High - yield bonds (sometimes referred to as junk bonds) typically offer above - market coupon rates and yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

The higher default risk is the chief reason that speculative - grade bond issuers have to pay higher interest rates that go hand - in - hand with the so - called credit migration risk (or credit rating risk), which is part of the credit risk by extension.

As such, securities rated below investment grade generally entail greater credit, market, issuer and liquidity risk than investment grade securities.

Credit rating agencies assess the risks of certain bonds, issuing grades that reflect the issuer's ability to meet the promised principal and interest payments.

These agencies use quantitative tools and qualitative judgments to evaluate the creditworthiness of an issuer and have developed a grading system from which they assign credit ratings to these issuers.