Confirm for me?
What is an example of a low rated corp bond? I assume a high yield or junk bond is a low rated corp bond?
What’s an example of a high rated bond? I assume this is a low yielding, AAA bond?
Yeah you’re right. High rated bonds are called investment grade bonds. Also, you have around 4 ratings in investment grade bonds, so just check it out. I suck at remembering all the ratings.
Lower rated bonds are high yield bonds. They’re also called speculative grade bonds.
Any bond that has a lower rating than BBB is considered speculative grade and thus is low rated and likely to have a higher yield due to the risk/reward trade off