Definition ∞ Investment-grade bonds are debt securities issued by corporations or governments that are considered to have a relatively low risk of default. These bonds receive high ratings from credit rating agencies, indicating a strong capacity for the issuer to meet its financial obligations. They are typically sought by institutional investors and pension funds due to their perceived stability and reliability. Such bonds represent a fundamental component of conservative investment portfolios.
Context ∞ The role of investment-grade bonds within digital asset portfolios and tokenized financial products is a growing area of interest for institutional investors. Discussions often center on the potential for tokenizing these traditional assets to enhance liquidity and accessibility, while maintaining their inherent low-risk profile. Future innovations might explore how blockchain technology can streamline the issuance and transfer of investment-grade debt, potentially reducing operational friction and broadening participation in these stable asset classes.
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