Leveraged Finance & Credit
What is the difference between investment grade (IG) and high yield (HY)?
Model answer
It's a ratings boundary. Investment grade is BBB−/Baa3 and above (S&P/Fitch / Moody's); high yield (a.k.a. 'junk' or 'speculative grade') is BB+/Ba1 and below. IG issuers have lower default risk,…
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