Monday, October 19, 2009

Bond

A bond is a certificate representing a loan from an investor to a corporation or government entity that makes fixed payments for a set time and eventually pays back the loan in full.

The amount of money that you earn on a bond is related to its rating

Sandard & Poors Long-Term Debt & Moody's Ratings Equivalents

Investment Grade: Moody's Standard & Poors
Exceptional Aaa, Aaa1, Aaa2, Aaa3 AAA, AAA-, AA+
Excellent Aa, Aa1, Aa2, Aa3 AA, AA-, A+
Good A, A1, A2, A3 A, A-, BBB+
Adequate Baa, Baa1, Baa2, Baa3 BBB, BBB-, BB+
Speculative Grade:

Questionable Ba, Ba1, Ba2, Ba3 BB, BB-, B+
Poor B, B1, B2, B3 B, B-, CCC+
Very Poor Caa, Caa1, Caa2, Caa3 CCC, CCC-, CC+
Extremely Poor Ca, Ca1, Ca2, Ca3 CC,CC-, C+
Lowest C C

Yahoo Finance Bond Page


No comments:

Post a Comment