High-quality bonds are debt securities issued by reliable entities, such as government agencies or financially stable corporations. These bonds are considered low-risk investments because they have a strong likelihood of paying back the principal amount along with interest. Investors often look for high-quality bonds to preserve capital while earning a steady income. The quality of a bond is typically assessed using credit ratings from agencies like Moody's or Standard & Poor's. Bonds rated AAA or AA are generally seen as high-quality, indicating a low chance of default. This makes them attractive to conservative investors seeking safety in their portfolios.