Speculative: Difference between revisions
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''Credit ratings'' | 1. ''Credit ratings''. | ||
A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or Standard and Poor’s. | A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or Standard and Poor’s. | ||
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Also known as 'non-investment' grade. | Also known as 'non-investment' grade. | ||
2. ''Trading.'' | |||
A transaction, investment or position taken in the hope or expectation of a gain following a favourable change in market prices. | |||
Contrasted with a hedging or arbitrage transaction. | |||
== See also == | == See also == | ||
* [[Arbitrage]] | |||
* [[Carry trade]] | |||
* [[Default]] | |||
* [[Credit rating]] | * [[Credit rating]] | ||
* [[Hedging]] | |||
* [[Investment grade]] | * [[Investment grade]] | ||
* [[Rating agencies]] | * [[Rating agencies]] | ||
* [[Speculation]] | |||
* [[Speculative motive]] | |||
* [[Unbacked]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Liquidity_management]] | |||
Latest revision as of 17:18, 10 November 2021
1. Credit ratings.
A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or Standard and Poor’s.
Speculative grade represents credit ratings which are weaker than investment grade.
Also known as 'non-investment' grade.
2. Trading.
A transaction, investment or position taken in the hope or expectation of a gain following a favourable change in market prices.
Contrasted with a hedging or arbitrage transaction.
