A credit (in the form of loans, bonds, etc) that fills in the cusp between an investment-grade credit and a non-investment-grade (speculative) credit. In general, crossover credits are rated low investment-grade by one rating agency and upper-grade speculative by another rating agency. Therefore, a crossover credit will trade at yield above that of a credit which carries a pair of investment-grade ratings at the lowest rung of the investment-grade scales.
March 17, 2025
