DEFINITION of 'Marketweight'

A credit rating system for fixed-income instruments. The marketweight ranking system gives a subjective estimate of the accuracy of the current credit spread and determines whether an investment is attractive. The system includes three ranks: marketweight, overweight and underweight. The marketweight rating indicates that the current credit spread of an instrument is in line with expectations.

BREAKING DOWN 'Marketweight'

Just as stocks may have a buy, sell or hold recommendation, this credit rating system will rate a debt instrument as overweight, underweight or marketweight. Being marketweight is similar to having a hold rating, whereas being overweight or underweight are equivalent to the buy and sell titles, respectively. Analysts will determine whether the current credit spread is an appropriate measure of risk for the investment and place a recommendation accordingly.

  1. Hold

    An analyst's recommendation to neither buy nor sell a security. ...
  2. Overweight

    1. A situation where a portfolio holds an excess amount of a ...
  3. Downgrade

    A negative change in the rating of a security. This situation ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount ...
  5. Upgrade

    A positive change in the rating of a security. An upgrade is ...
  6. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
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