Fixed income

Capitalise on investment grade thinking

Find out what investment grade corporate bonds can bring to your portfolio. Explore the latest outlook, themes and trends in the asset class, and discover how Invesco can help.

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$91 billion

We manage $91 billion in global investment grade credit assets.1

23 years

Our portfolio managers average 23 years of experience.1

182 team members

Our experience fixed income team is made up of 182 investment professionals across the globe.1    

Investment grade portfolios built on collaboration

We bring the vast resources of a global asset manager while remaining agile enough to potentially add value through security selection. Dive into our breadth of active, passive, and environmental, social and governance solutions.

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Debt instruments are exposed to credit risk, which is the ability of the borrower to repay the interest and capital on the redemption date. 

What can investment grade credit bring to your portfolio?

Reliable income generators

Investment grade corporate bonds can play an important role as income generators in investor portfolios.

This made them popular with investors in the years following the global financial crisis, when the world lived through a sustained period of ultra-low yields.

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Less volatile than equities

Despite paying a higher level of income than government bonds, investment grade corporate bonds do not typically expose investors to an excessive level of risk.

They tend to exhibit significantly lower price volatility than equities, for example.

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Low credit risk

History shows us that defaults are very rare for investment grade issuers. Even between 2008 and 2009, the default rate peaked at only 0.3-0.4% of the universe.

The threat of credit downgrades is more common, but can be mitigated with thorough credit analysis.

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Good diversifiers

Investment grade corporate bonds represent a large portion of the global investment universe.

This means they can offer strong diversification benefits, allowing investors to gain exposure to a broad range of economic sectors and geographies.

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Related insights

Learn more about the opportunities we see in today’s market.

  • Fixed Income
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    Global Fixed Income Strategy Monthly Report

    By Invesco

    We speak with IFI portfolio managers about the factors driving US investment grade and how they are navigating the current fixed income environment. Read online.

Frequently asked questions

Investment grade credit are bonds or other fixed-income securities rated at a certain level of creditworthiness by rating agencies. These securities are considered to have a lower risk of default compared to non-investment grade (also known as “high yield” or “junk”) bonds. The ratings for investment grade credit typically range from BBB- or Baa3 (low) to AAA or Aaa (high).

Investment grade bonds are rated by credit rating agencies like Standard & Poor’s (S&P), Moody's, and Fitch. The ratings are based on the issuer’s financial health, historical performance, and overall economic environment. Ratings range from AAA (highest quality, lowest risk) to BBB- (lower quality, higher risk but still considered investment grade). For example:

AAA/Aaa: Highest credit quality, minimal risk.

AA/Aa: High credit quality, very low risk.

A: Strong credit quality, low risk.

BBB/Baa: Adequate credit quality, moderate risk, but still investment grade.

The credit rating on a bond will be associated with the premium or “spread” demanded for holding it: the higher the risk, the more issuers will have to pay investors.

Bond prices in general work inversely to interest rates. So, when interest rates rise, the price of existing bonds typically falls. When interest rates fall, the price of existing bonds usually increases. The extent of the price change will depend on several factors including the time to maturity of the bond, its coupon level and frequency. The sensitivity to interest rate changes can be worked out mathematically and is known as “duration”. Bonds with longer maturities and lower coupons, which are more frequently found in investment grade, are more sensitive to interest rate changes, something investors should be aware of. But corporate and other investment grade bonds will generally have a lower interest rate sensitivity than equivalent government bonds, thanks to the additional credit premium in the coupon.

  • Footnotes

    1 As of December 31, 2024

    Investment risks

    For complete information on risks, refer to the legal documents.

    The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    Important information

    This marketing communication is exclusively for use by Qualified Clients/Sophisticated Investors in Israel. It is not intended for and should not be distributed to the public. Investors should read the legal documents prior to investing.

    Data as at 25 August 2025, unless otherwise stated.

    By accepting this material, you consent to communicate with us in English, unless you inform us otherwise.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

    No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public.  This Fund has not been approved by the Israel Securities Authority (the ISA). The Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, who in each case have provided written confirmation that they qualify as Sophisticated Investors, and that they are aware of the consequences of such designation and agree thereto and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution, other than, in the case of an offeree which is an Sophisticated Investor, where such offeree is purchasing product for another party which is an Sophisticated Investor. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”).  Neither Invesco Ltd. nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person to whom it is unlawful to make such offer or solicitation.

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