Moody’s

"The universe of corporate bonds that Milken was entering consisted mainly of “straight debt”—bonds whose holders receive fixed-interest payments, typically every six months, until maturity, when the interest is repaid. A much smaller, more arcane part of the market consisted of convertible debt—bonds whose holders have the option to exchange them for other securities, usually stock. Corporate bonds are rated by rating agencies, such as Standard and Poor’s and Moody’s. Those companies with the strongest balance sheets and credit history, the elite of corporate America, are rated triple A. When they issue bonds in order to raise debt capital, the interest those bonds pay is not much higher than that of risk-free U.S. Treasury bonds. These are known as “investment-grade” companies."

"The universe of corporate bonds that Milken was entering consisted mainly of “straight debt”—bonds whose holders receive fixed-interest payments, typically every six months, until maturity, when the interest is repaid. A much smaller, more arcane part of the market consisted of convertible debt—bonds whose holders have the option to exchange them for other securities, usually stock. Corporate bonds are rated by rating agencies, such as Standard and Poor’s and Moody’s. Those companies with the strongest balance sheets and credit history, the elite of corporate America, are rated triple A. When they issue bonds in order to raise debt capital, the interest those bonds pay is not much higher than that of risk-free U.S. Treasury bonds. These are known as “investment-grade” companies."