The distinction between investment grade debt and non-investment grade debt is best described by differences in:

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The distinction between investment grade debt and non-investment grade debt is best described by differences in credit quality. Investment grade debt is considered lower risk and more stable, with a higher likelihood of repayment, while non-investment grade debt (also known as high-yield or junk bonds) is considered higher risk with a greater likelihood of default. Tax status and maturity dates may also vary between investment grade and non-investment grade debt, but these differences are not the defining characteristics of each category.

The Distinction Between Investment Grade Debt and Non-Investment Grade Debt