Capital Markets (ECM / DCM)
Where exactly is the line between investment-grade and high-yield, and why does that specific boundary matter so much?
Model answer
The cutoff is BBB-/Baa3: BBB- (S&P/Fitch) or Baa3 (Moody's) and above is investment grade; BB+/Ba1 and below is high yield ('junk'). The boundary matters because a huge pool of capital is…
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