Noninvestment grade bonds. Also called Junk Bonds. See also: Investment Grade.
High-yield bonds, popularly known as junk bonds, are lower than investment-grade securities. These bonds are considered to be ‘speculativeâ€(tm) because the issuing companyâ€(tm)s ability to meet the debt obligations is less certain.
High-yield bonds are issued by organizations that do not qualify for "investment-grade" ratings by one of the leading credit rating agencies. These issuers must pay a higher interest rate to attract investors to buy their bonds and to compensate them for the risks associated with investing in organizations of lower credit quality.
Debt securities issued by companies with lower credit ratings. These bonds entail higher risks than investment-grade bonds and offer higher yields by way of compensation. Also called junk bonds.
Also known as "junk" bonds or noninvestment-grade bonds. They carry a below investment grade or lower credit rating and are therefore classified as riskier investments.
Bonds that are rated as below investment grade. The issuers of these bonds -- which are judged to be at a higher risk of default -- have to pay an attractive dividend to compensate investors for the additional risk.
Lower-rated bonds, or bonds rated below investment grade quality. These bonds typically have higher yields than investment grade bonds but also have higher credit risk, or risk that the issuer will not pay the interest and/or principal when it is due.