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Their specialists research a company's circumstance and determine a bond ranking for the business. Every ranking service has its own formula for measuring risk and its own kind of score scale. Usually, score scales are defined in letter grades, where an AAA ranking designates a safe, low-risk bond, and a D rating designates a high-risk bond.
government bonds, are usually low-yield bonds. You can depend on getting a payment but that payment will be small. why invest in a bond yahoo finance. On the other side of the spectrum, you have what's not-so-affectionately called, which are low-rated, high-risk bonds. In order to lure investors into buying these dangerous junk bonds, the issuing business promise high yields.
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