The BBB U.S. Bond Market Is Now Valued At More Than $3 Trillion

The BBB category is the lowest within investment grade, and this makes it extremely attractive to investors looking for growth, but according to S&P Global, they now account for 53% of investment grade bonds in the United States. Globally, BBB corporate debt exceeds $7 trillion, and companies from the United States account for more than half of this figure.

One of the biggest risks investors take when purchasing these bonds is that they could be downgraded to speculative, which creates a whole other set of implied risks. With the average one-year downgrade rate for ‘BBB-‘ currently sitting at 9.4%, a sharp downturn in market conditions could potentially cause a snowball effect. Read more at S&P Global

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