--%>
Assignment Help - homework help

Bond Ratings

Fully explain the term Bond Ratings?

E

Expert

Verified

Bond Ratings:

• Individuals and small business encompass to rely on exterior agencies to give them information on default potential of bonds.

• The two most famous credit rating agencies are Moody’s Investors Service (Moody’s) and standard and poor’s (S&P). Both credit rating services rank bonds in precedence of their predicted probability of default and publish the ratings as letter grades.

• The maximum-grade bonds, those with the minimum default risk, are rated Aaa (or AAA).

• Bonds in the top four rating groups are termed as investment-grade bonds—AAA to Baa.

• State and federal laws usually need commercial banks, pension funds, insurance companies, other financial institutions, and govt. agencies to buy securities rated merely as investment grade.

   Related Questions in Microeconomics

  • Q : Consumers and corrupt governmental

    I have a problem in economics on Consumers and corrupt governmental processes. Please help me in the following question. John Kenneth Galbraith believes that the big corporations: (1) Must be broken up to the foster competition. (2) Manipulate the con

    		•
  • Q : State excess demand or inflationary gap

    State excess demand or inflationary gap: Excess demand takes place whenever AD is bigger than AS at the level of full employment equilibrium.

    		•
  • Q : Natural barrier to entry in monopolizes

    The Diamante Corporation is vast and owns the world’s merely red diamond mine. Thus diamante monopolizes the market for red diamonds, and this is protected by competition by a: (1) regulatory barrier to entry. (2) strategic barrier to entry. (3) natural barrier

    		•
  • Q : Define Real Rate of Interest Define

    Define Real Rate of Interest in Economics?

    		•
  • Q : Neoclassical and heterodox One of my

    One of my friends can't succeed to get the answer of this question. Provide answer of this question. Economists of neoclassical argue that goods contain just subjective (or personal) use-value dimension; heterodox economists argue that goods contain use-value and soci

    		•
  • Q : Problem on Horizontal Mergers Can

    Can someone please help me in finding out the accurate answer from the following question. Which of the given below is not an illustration of horizontal integration? (1) Prudential Insurance gets Metropolitan Life Insurance. (2) Daimler-Benz absorbs Chrysler. (3) McDo

    		•
  • Q : Monopoly market structure When one firm

    When one firm controls all production and the price of a good without shut substitutes, there is: (i) monopoly market structure. (ii) violation of the law of demand and supply. (iii) lack of equity although assurance of efficiency. (iv) legal barrier to entry. (v) cer

    		•
  • Q : Competitive Prices for selling This

    This purely-competitive producer’s generic bricks presently sell for: (i) $60 per thousand. (ii) $70 per thousand. (iii) $80 per thousand. (iv) $90 per thousand. (v) $100 per thousand.

    Q : Competitive Markets-Unions of labor Can

    Can someone please help me in finding out the accurate answer from the following question? The purely competitive labor markets are not characterized through: (w) Most of the individual buyers and sellers of the labor services. (x) Wages equivalent to the marginal res

    		•
  • Q : Monopsony Power definition Can someone

    Can someone please help me in finding out the accurate answer from the following question. The monopsony is a: (1) Market with just one seller. (2) Sole buyer of a specific good or resource. (3) Market with just one product. (4) Firm which employs just one resource.

    		•