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.
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.