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Why are bond ratings useful?

Updated: 9/18/2023
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13y ago

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They allow people to understand the risk as the ratings agencies do the analysis so we don't have to.

Unfortunately they are paid by the organisations whose bonds they rate, creating a moral dilema.

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13y ago
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Related questions

What is bond ratings?

A bond issuer's probability of defaulting


Why are bond ratings useful to investors?

Ratings are an indicator of credit risk. They can also be used to communicate credit quality to a prospective purchaser. A rated instrument may also qualify for beneficial capital treatment for regulated institutions


Can bond ratings be used as a measure of the bond's risk?

Yes OR true


Where can I check bond ratings?

You can check bond ratings at various financial sites online. Some of the best sites to check are Standard and Poors, Moody's and Barclay's. You can also check bond ratings at sites of major banks.


How are bond ratings measured?

Bond ratings are determined by bond rating agencies. The agency evaluates the company's current financial condition, their financial past, and the current market condition, and then makes a decision based on this.


What mutual funds have the best ratings?

The mutual funds that have the best ratings include High Yield Bond, Short Term Bond, Long Term Bond, Small Growth, Financial, World Bond, Retirement, Large Growth, and Large Value.


What are the ratings and certificates for Anna Bond - 2012?

Anna Bond - 2012 is rated/received certificates of: India:U/A


What are the ratings and certificates for Boricua's Bond - 2000?

Boricua's Bond - 2000 is rated/received certificates of: USA:R


What are bond ratings?

Bond ratings are grades with are given to bonds indicating their credit quality. They are mostly provided by private independend rating services such as Standard & Poor's, Moody's and Fitch.


Bond ratings are usually NOT affected by?

the company fiscal year


How are bond ratings established?

By the securities and Exchange commission (SEC).


What exactly are bond ratings?

Bond ratings are grades with are given to bonds indicating their credit quality. They are mostly provided by private independend rating services such as Standard & Poor's, Moody's and Fitch.