Class 3-6 Bonds

Bond traders are hip. They’ve got their own lingo to make sure you think they’re cooler than the guys selling insurance. And nothing’s as hip as saying the words “Class 3-6 Bonds” while you’re trying to impress the interns after trading hours at Applebee’s.

There are six grades of bonds based on risk and likelihood of default. Those grades are classified by the National Association of Insurance Commissioners (those guys are cooler, and hang out at Chili’s). Class 1 and 2 bonds are considered investment grade. Everything else is non-investment grade.

Class 3 is less risky than Class 4. Class 6 is on the verge of default, so you might just want to save your money.

Call them crap if you want, but we’ll just say that they’re "riskier investments"...so that we can still hang out at Applebee’s.