flight to quality

flight to quality definition - business

flight to quality

A movement by investors to purchase higher-quality securities. For example, an investor might sell bonds rated lower than BBB and invest the proceeds in bonds rated AA or AAA. A flight to quality occurs when investors expect a deterioration in political stability or in economic activity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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