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Investment grade bonds are rated BBB or better. They are pretty safe. Of course when a bond rating agency downgrades your bonds, you better ask why.

Junk bonds rated BB or lower are a whole 'nother animal. They can accelerate market crashes as people head for safety in times of stress. They are only for the pros. Or a tiny portion of a well diversified portfolio.

Junk bond rating usually means that the bond rating agency could not find assets that would cover repayment of principal. That means the proposed business must succeed or you may not get your money back at maturity. Ie risk of bankruptcy.

And by the way, bond questions are best posted on the Bonds and Fixed Incomes discussion board. They are the experts and can answer your questions.
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