The term "Ba3/BB-" is a credit rating that indicates that a company or entity is a "speculative" or "junk" grade issuer, and is considered to be a higher risk investment. This credit rating is given by Moody's Investor Service and Standard & Poor's (S&P), two of the major credit rating agencies. Are BB rated bonds investment grade? BB rated bonds are not investment grade. Investment grade bonds are those that are rated BBB or higher by Standard & Poor's.
Is BB better than B+? There are a few key considerations when comparing BB and B+ rated bonds:
1) Risk: BB rated bonds are considered higher risk than B+ rated bonds. This means that there is a higher chance that the issuer will default on their debt obligations.
2) Return: BB rated bonds typically offer higher yields than B+ rated bonds. This is because investors demand a higher return for taking on the higher risk.
3) liquidity: BB rated bonds may be less liquid than B+ rated bonds. This means that it may be harder to find buyers for BB bonds in the secondary market.
Overall, it is difficult to say definitively which type of bond is better. It depends on the individual investor's risk tolerance and return objectives. What is the difference between a bond and a guarantee? Bonds and guarantees are two types of financial instruments that are often used for similar purposes. Both can be used to raise capital, provide security for loans, or act as collateral. However, there are some key differences between the two.
Bonds are debt instruments that are issued by a government or corporation and sold to investors. The issuer is then obligated to make periodic interest payments to the bondholders, as well as repay the principal amount of the bond when it matures.
Guarantees, on the other hand, are promises by one party to another that it will make good on a debt or obligation if the borrower defaults. In other words, the guarantor agrees to pay the lender if the borrower is unable to do so. Guarantees can be issued by financial institutions, insurance companies, or even the government. What is the probability of default for BB rating? According to Standard & Poor's, the probability of default for a BB rating is 1.67% within 5 years and 2.42% over the life of the debt. What is BB in economics? BB is an acronym for "Bond Buyer," a publication that covers the bond market. The term is also used more generally to refer to investment-grade bonds.