For now, though, the market for high-grade bonds of consumer products companies appears to be at a standoff.

But Sallie Mae appears ready to walk away from issuing high-grade bonds and into the edge of junk-bond territory.

A tenured professor, whose earnings are as consistent as the income from a high-grade bond, can afford to be largely in growth stocks.

Even high-grade American corporate bonds are not too compelling now, Mr. Rivelle said.

The objective of the Index is to capture the return of readily tradable, high-grade Vietnamese corporate bonds.

In 1982, when the deficit first climbed into triple figures (that year it came to $120 billion), interest rates on high-grade corporate bonds averaged 13.79 percent.

It then locked in the surplus by buying high-grade corporate bonds, carefully matching the durations to the maturity of Boots's obligations to its retirees.

So far, First Executive has not resold the high-grade bonds to new investors.

A company could be sure of having enough money available by investing in secure assets like high-grade corporate bonds.

That's why funds holding corporate issues that are rated below investment grade yield more than funds investing in high-grade corporate bonds.