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Company's that assess the credit worthiness of both debt securities and their issuers in the united states the three primary bond ratings agency's are standards and poor's since the issuers pay the agencies for the service of providing ratings.

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10y ago

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Why would a firm wish to call a bond in before its maturity date?

A firm may wish to call a bond before its maturity date primarily to take advantage of lower interest rates. By calling the bond, the firm can refinance the debt at a reduced cost, thus decreasing its interest expenses. Additionally, calling the bond can provide flexibility in managing its capital structure or free up cash for other investments or operational needs. Lastly, if the firm's creditworthiness improves, it may wish to eliminate higher-cost debt from its balance sheet.


Why are bond ratings important?

Bond ratings are important because they provide investors with an assessment of the creditworthiness of a bond issuer, indicating the likelihood of timely interest payments and principal repayment. Higher ratings typically suggest lower risk, making the bonds more attractive to conservative investors. Additionally, bond ratings influence the interest rates that issuers must pay; lower-rated bonds usually require higher yields to compensate for increased risk. Overall, these ratings facilitate informed investment decisions and contribute to the efficiency of the bond market.


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

Yes OR true


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.


How are bond ratings established?

By the securities and Exchange commission (SEC).

Related Questions

Why are bond ratings important both to firms and to investors?

Bond ratings are important to firms because they affect the cost of borrowing. A higher rating means lower interest rates, saving the firm money. Investors rely on bond ratings to assess the credit risk of the bond issuer and make informed investment decisions to protect their capital and earn returns.


Why are bond ratings important?

Bond ratings are important because they provide investors with an assessment of the creditworthiness of a bond issuer, indicating the likelihood of timely interest payments and principal repayment. Higher ratings typically suggest lower risk, making the bonds more attractive to conservative investors. Additionally, bond ratings influence the interest rates that issuers must pay; lower-rated bonds usually require higher yields to compensate for increased risk. Overall, these ratings facilitate informed investment decisions and contribute to the efficiency of the bond market.


How can you find out about short term bond funds?

The best place would be at your local bank or investment firm. They will be able to provide you with the most complete and accurate information possible.


What is bond ratings?

A bond issuer's probability of defaulting


What are the ratings and certificates for The Firm - 2007?

The Firm - 2007 is rated/received certificates of: Malaysia:U


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.


What kind of bond does NaCl provide you with?

ionic bond


What are the ratings and certificates for Standing Firm - 2010?

Standing Firm - 2010 is rated/received certificates of: Singapore:PG


What are the ratings and certificates for How Firm a Foundation - 2008?

How Firm a Foundation - 2008 is rated/received certificates of: USA:R


What are the ratings and certificates for The Firm of Girdlestone - 1915?

The Firm of Girdlestone - 1915 is rated/received certificates of: UK:U


What are the functions of a firm?

to provide institutional customers