Speculative Grade (Bonds)

A bond that is speculative-grade has a rating lower than Baa from Moody's Investors Service, a rating lower than BBB from Standard and Poor's or both. Nonrated bonds are additionally viewed as speculative-grade.
Bonds with ratings of Baa, BBB or higher are named venture grade. Numerous institutional investors have policies that expect them to limit their bond investments to venture grade issues.