Investment grade corporate bonds, or high-grade bonds, are those that are assigned a lower risk of default and receive higher ratings by credit agencies — i.e., bonds rated a minimum of Baa by Moody’s or BBB by S&P Global Ratings and Fitch Ratings. These bonds are also generally issued at lower yields compared to lower-rated bonds, but higher yields than government bonds. Investment grade corporate portfolios can be invested entirely in USD-denominated corporate debt, or more broadly in corporate debt denominated in other developed market currencies. Representative indexes include the Bloomberg U.S. Corporate Investment Grade Index and the Bloomberg Global Aggregate Corporate Bond Index.
As credit markets and regions remain differentiated by distinct secular and cyclical trends and characteristics, despite global integration, inefficiencies can be exploited and opportunities uncovered via cross-market analysis and sector specific allocation.
Stone Harbor has been managing investment grade corporate debt as part of broader mandates since 1993 and launched a standalone track record dating back to 2013.
Stone Harbor offers a flexible range of options within our investment grade corporate strategy, including a dedicated investment grade corporate strategy via separate accounts or pooled vehicles, or exposure through broader investment grade or multi-sector credit strategies.