Why even bother with bond rating? I mean the investment is either a dog or a bird. It either hunts or it does not. So why do people even allow themselves to be influenced, or to make their investing choices, due to bond rating. Well first off whether you are going to invest or not has nothing to do with bond rating.
A low bond rating might mean a whole lot of things. A bond rating might indicate a good performer, or an undervalued diamond in the rough. It might mean disaster and it might mean perils before swine. But what ever that bond rating means, it means this and this is what is most important to you; a bond rating indicates the value as perceived by the investing community.
Now, how does bond rating affect you? In times of both economic peril and abundance, we are always looking for the next big thing. Sometimes an undervalued bond rating might just be that next big thing. But it is up to you to determine what bond rating means to you and how you want bond rating to influence your investing decisions. So, the question is really this, how does bond rating affect your decision to invest?
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