The bond grades are Grade 3 and Grade 9. AAA is the highest level, AA is the highest level, A is the upper-middle level, BBB is the middle level, BB is the lower-middle level, B is the speculative level, CCC is the complete speculative level, CC is the maximum speculative level, and C is the lowest level.

1. Bond rating is an important indicator to measure default risk. Bond rating directly affects the interest rate of debt financing and the cost of corporate debt. Generally speaking, bonds with high credit ratings can be issued at lower interest rates; Bonds with low credit rating are risky and can only be issued at higher interest rates. In addition, many institutional investors limit their investment scope to specific grades of bonds.

2. Bond rating is convenient for investors to make bond investment decisions. For investors, especially small and medium-sized investors, due to the limitation of time, knowledge and information, it is impossible to analyze and select many bonds, so it is necessary for professional institutions to objectively, fairly and authoritatively evaluate the reliability of debt service and provide reference for investors' decision-making.

Extended data:

Faced with all kinds of risks that may be encountered in the process of bond investment, investors should take them seriously, use various methods and means to recognize and identify risks, find out the causes of risks, then formulate the principles and strategies of risk management, and use various skills and means to avoid risks, transfer risks, reduce risk losses, and strive to obtain maximum benefits.

(1) Seriously demonstrate the risks before investment. Before investing, we should fully understand and master all kinds of information through various channels, and analyze all kinds of risks that the investment object may bring from both macro and micro aspects.

(2) Formulate various investment strategies that can avoid risks.

(1) The bond investment period is stepped. The so-called term ladder means that investors spread their funds into bonds with different maturities. Investors often hold short-term, medium-term and long-term bonds. No matter when it expires, there are always some bonds that are about to expire. When the bonds expire, they invest their money in the longest-term securities.

(2) Diversification of bond investment types. The so-called diversification means that investors invest their own funds in various bonds, such as government bonds, corporate bonds and financial bonds. The returns and risks of various bonds are different.

③ Short-term bond investment period. The so-called short-term means that investors will invest all their funds in short-term securities. This investment method is more suitable for China enterprise investors.

(3) Using various effective investment methods and technologies.

Using treasury bond futures trading for hedging. Treasury bond futures hedging transaction is very effective for avoiding interest rate risk in treasury bond investment. Treasury bond futures trading refers to investors buying and selling treasury bonds in the financial market.

Accordingly, make a forward transaction of the same type of bonds, and then use the long-short trading skills to hedge the two transactions at an appropriate time, and use the gains and losses of futures trading to offset or partially offset the gains and losses of spot trading within the relevant period, thus avoiding or reducing the interest rate risk of national debt investment.

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