How risky are Corporate Bonds rated A? - aaa corporate bond rate
How risky corporate bonds are rated A? (In contrast to the AAA and AA).
What are the chances that the typical symbol of the missing link?
Wednesday, January 13, 2010
Aaa Corporate Bond Rate How Risky Are Corporate Bonds Rated A?
3 comments:
There are corporate bonds very, very little or AAA AA. Any bond rated BBB or higher is considered "investment grade" - and not speculative. The main problem of bond ratings is that they really do not really trust. There were more than a few cases in the past in bonds with AAA ratings have gone bankrupt. Agencies, even a kind of connection is slower than molasses in January to change their grades, even if the company spiraling into the black hole of oblivion.
For example, the debt of Bank of America is currently rated AA, but there is a buyer of bonds on the street who thinks that. The interest rates for their bonds are much closer to the rate of scrap. If Walmart bonds that are rated the same are currently in negotiations with an interest rate much lower, about 4.2% versus 6.2% in the BAC.
And for the love of God, Lehman Brothers, in a role that the role of Merrill Lynch, but yields low Yell rubble. + 7%. While John Deere assessed the same period of only 4.4%.
Not long ago that GM and Ford, the roleInvestment grade rating lost "despite the two companies billions. Not anymore.
There are corporate bonds very, very little or AAA AA. Any bond rated BBB or higher is considered "investment grade" - and not speculative. The main problem of bond ratings is that they really do not really trust. There were more than a few cases in the past in bonds with AAA ratings have gone bankrupt. Agencies, even a kind of connection is slower than molasses in January to change their grades, even if the company spiraling into the black hole of oblivion.
For example, the debt of Bank of America is currently rated AA, but there is a buyer of bonds on the street who thinks that. The interest rates for their bonds are much closer to the rate of scrap. If Walmart bonds that are rated the same are currently in negotiations with an interest rate much lower, about 4.2% versus 6.2% in the BAC.
And for the love of God, Lehman Brothers, in a role that the role of Merrill Lynch, but yields low Yell rubble. + 7%. While John Deere assessed the same period of only 4.4%.
Not long ago that GM and Ford, the roleInvestment grade rating lost "despite the two companies billions. Not anymore.
The chances of an A-rated bond defaults are small.
There are some AAA-rated bonds on the market.
BBB is the lowest investment grade. "
Bonds, however, recognize that an A will be evaluated today may tomorrow CCC. If you have a credit balance in the various obligations that need to see the downgrading and sometimes not even help. Remember Enron? Enron's bonds were insured grade and agencies of the world that the risk was "good." Within weeks, Enron's bonds are downgraded to junk and the company soon went bankrupt.
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