Barron's Confidence Index

Finance allah shmoop what is investment grade Whoa whoa Really

steve Not not investment grade No Oh alright much better

This is investment grade Aren't enough of that Think about

the quality of investment in a bond as relating tow

How slippery the slope is on which investors are driving

their investment returns when you get way Steep like here

in the rocky mountains Well that's the land of c

and d rated bonds And you make a lot of

vertical progress As long as things don't go Ah arai

like vertical progress Like you get very high interest rates

for taking a lot of risk that these bonds go

bankrupt They're not investment grade so yeah And things go

awry Well you look like that guy All right So

here's the map for grades of bonds brought to you

courtesy of the kindly loving people at moody's and s

and p rating services And you can see the block

investment grade there from the three triple d minus there

on up Well all of these are investment grade Meaning

that at least historically the odds of any of these

bonds going bad I e they stopped paying interest payments

And investors don't collect well The odds of them failing

are very low The whole notion of being investment grade

means that the odds of getting your investment in the

bond back plus all the interest payments are really high

Their grade is for investors And with that certainty comes

thie quote penalty unquote of lower interest rates or investment

returns Because presumably in buying investment grade paper investors have

taken last risk so they get less reward right Yeah

and you know for those who eat risk for breakfast

you know the sky's the limit and not always in 00:01:56.657 --> [endTime] a good way No