The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

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

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. 

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