A comprehensive overview of Credit Quality, its importance, how it's assessed, various types and ratings, historical context, and real-world applications.
Investment-grade bonds are designated by rating agencies such as Standard & Poor's (S&P) as being in the top four credit quality categories (AAA to BBB) and are deemed suitable for purchase by institutional investors such as pension funds, insurance companies, and banks.
Explore the concept of the Weighted Average Rating Factor (WARF), a crucial metric used by credit rating companies to assess the credit quality of a portfolio. Learn about its calculation, significance, and applications in finance.
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