Are All Triple A Bonds Alike?
Unlike stock investors, those who invest in bonds usually have a way to gauge how risky an investment might be. It’s the rating assigned to the bond by a credit rating agency, with triple-A being the agency’s best rating. However, not every triple-A rating means precisely the same thing. In fact, two bonds with that same rating can present different possibilities regarding timely repayment of principal. Here’s why: 1. The ratings are relative to the sector. A fundamental fact