"Investment Grade" refers to a classification of bonds or other financial instruments that are considered to have a low risk of default. These securities are typically rated by credit rating agencies like Moody's, S&P, or Fitch and are assigned ratings of 'BBB-' or higher on the S&P scale. Investors often seek these types of investments for their stability and reliability. Investing in investment-grade securities is generally seen as a safer option compared to lower-rated bonds, which carry a higher risk of default. This makes them appealing to conservative investors, such as pension funds and insurance companies, who prioritize capital preservation and steady income.