Investment Grade Bonds

Investment grade bonds are securities issued by entities like governments or corporations that are considered to have a low risk of default. These bonds are rated BBB- or higher by credit rating agencies, indicating strong financial stability and reliability in paying back principal and interest. Because of their lower risk, they typically offer lower interest rates compared to riskier bonds. Investors seek investment grade bonds as a steady, relatively safe way to grow their money while maintaining a predictable income stream, making them a popular choice for conservative investors or those prioritizing capital preservation.