credit quality

Definition

A measurement of a bond issuer's ability to pay interest on the bond in a timely manner. The lower the credit quality of an issuer, the higher the risk that investors will not receive the stated interest rate, and the greater the risk of default on the principal. Credit quality is measured by a credit rating.

Use credit quality in a sentence

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
fixed-income style box non-investment grade