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A junk bond is an obligation that has been assigned a lower rating...

Bonds rated BBB- (Standard & Poor's and Fitch scale) or Baa3 (Moody's scale) or higher are considered investment grade. Lower rated bonds are considered "speculative" and are often referred to as "high yield" or "junk" bonds. Investment grade. Moody's.

With approximately $3.2 trillion in bonds and notes, the BBB category accounts for the majority (53%) of US investment grade bonds. BBB-rated bonds are more than 2.5 times the size of the speculative bond market.

Standard & Poor's (S&P) is a company that is a leading index provider and data source for independent credit ratings. The name derives from the 1941 merger of two financial data publications, Henry Burnham Poor's publication on railroad prices (from 1860) and the Bureau of Standard Statistics, founded in 1906.

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