Also referred to as a junk bond, a bond that is rated BB or below by Standard & Poor's, paying a higher interest rate and considered riskier than higher quality bonds.
A bond with a rating of BB or lower that pays a higher yield to compensate for the greater investment risk it represents to investors.
These are the lowest quality bonds. Bonds with credit ratings below BBB from Standard & Poor's or Baa from Moody's Investor Services are considered speculative because they have a greater chance of default than investment grade bonds. High-yield bonds are usually issued by smaller companies without long track records or by companies with questionable credit ratings. To compensate for the additional risk, issuers offer higher yields than investment grade bonds. In recent years however, junk-bond yields have declined as their popularity has increased and default rates have slowed. They are also called junk bonds.
Low-rated bonds pose greater risk of default than higher-rated bonds. As a result, their issuers must pay investors a higher rate of interest to offset that risk, which, in turn, produces a higher yield. These high-yield bonds are also described, somewhat more graphically, as junk bonds.
Fixed income asset that generates high interest as it has a high risk of insolvency.
a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit
A bond that has a rating of BB or lower and that pays a higher yield to compensate for its greater risk.
also known as junk bonds, these fixed income instruments have a rating of BB or lower and pay a higher yield to compensate for their greater credit risk.
A bond issued by an issuer that is considered a credit risk by a Nationally Recognized Statistical Rating Organization, as indicated by a low bond rating (e.g., "Ba" or lower by Moody's Investors Services, or "BB" or below by Standard & Poor's Corporation). Because of this risk, a high-yield bond generally pays a higher return (yield) than a bond with an issuer that carries lower default risk. Also known as a "junk" bond.
bond that is rated as below investment grade; higher risk of default of interest and principal payments. Sometimes referred to as “Junk Bondsâ€.
Bonds issued by lower-rated corporations, rated Ba, Bb or below and offering a higher yield than more creditworthy securities. Sometimes known as junk bonds.
A bond that has a rating of BB or below. These bonds have a higher risk of default. High-Yield bonds tend to pay higher interest payments than High-Grade bonds due to the increased risk of default. They are also known as Junk Bonds. lliquid Investments that are not readily and easily converted into cash. Illiquid assets that are not actively traded and real estate and examples of illiquid assets.
Also called junk or non-investment grade bonds, these bonds have low ratings (below BBB) or are in default. They usually carry a higher degree of risk and a higher potential yield than other bonds, and are often associated with excessive leveraging, corporate takeovers, and leveraged buyouts.
A bond which pays a high yield due to significant credit risk.
A bond with a speculative credit rating.