investment grade
A label given to a bond from a borrower that rating agencies consider unlikely to miss payments, meaning it is seen as a relatively safe loan. It is not a guarantee but it signals the borrower has solid finances.
Where it is explained in full
Bonds and Treasuries: lending money, with a price that moves. A bond is a loan you make. The interest is fixed, the price is not, and the relationship between the two confuses nearly everyone the first time.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Graded vesting
Employer money becomes yours gradually, a percent each year.
- registered investment adviser
A person or firm that gives investment advice for pay and is registered with the government to do so.
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