Investment grade definition

Investment grade is a rating applied to a municipal and corporate bond with a low risk of default.

Investment grade ranges from a rating of AAA (or Aaa) – a bond seen as having ‘extremely strong capacity to meet financial commitments’ – to BBB (or Baa) – a bond with ‘adequate capacity to meet financial commitments but more subject to adverse economic conditions.’

These ratings are based on a number of factors, but primarily the likelihood that the bond issuer will be able to repay its value in full and on time.

IG Smart Portfolios

Invest in an expertly managed portfolio, at a fraction of the cost of traditional wealth managers and independent financial advisors (IFAs), with an IG Smart Portfolio.

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

IG UK Contact us Terms and agreements Privacy IG Community Cookies

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.

iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with IG Markets Limited and its affiliates. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by IG Markets Limited or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by IG Markets Limited or any of its affiliates.