Are Baa Bonds Safe

BAA Bond Yields. Within Moody’s ratings, AAA bonds and BAA bonds represent opposite sides on the spectrum of bonds included within the investment-grade category; they’re both bonds that are recommended based on security and risk.

What is Aaa and Baa?

Credit Ratings 101 The top of the credit rating spectrum, so-called investment-grade bonds, is bracketed by AAA—the safest credit rating—at one end and BAA (on the Moody’s rating scale) or BBB (on the S&P rating scale, equivalently) at the other.

What is BBB corporate bond?

Bonds with a rating of BBB- (on the Standard & Poor’s and Fitch scale) or Baa3 (on Moody’s) or better are considered “investment-grade.” Bonds with lower ratings are considered “speculative” and often referred to as “high-yield” or “junk” bonds. Investment grade. Moody’s. Standard & Poor’s.