Definition

A rating that indicates a bond or security has a low risk of default, making it a safer investment option.

What to consider

  • Invest time in learning the basics of different investment strategies.
  • Seek reputable sources and courses to build your knowledge.
  • Apply your learning to make more confident decisions.

Real world scenarios

  • To reduce risk, Andrew focused on purchasing investment grade bonds, which were rated highly for their stability and low default risk.

Related terms

Investments & Retirement