Investment In Junk Bonds Ratio


Definition of "Investment in junk bonds ratio"

Ana  Bohabot real estate agent
Ana Bohabot, Real Estate Agent Keller Williams Legacy

Ratio of the company's investment in noninvestment grade bonds dividend to its adjusted surplus. This ratio shows how vulnerable the company's surplus is to the market fluctuations in noninvestment grade bonds. The lower this ratio, the more financially sound the insurance company.

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