high-yielding bond issued by less secure companies; also used to finance leveraged buy-outs.
is a bond with a speculative credit rating of BB or lower. Such bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poor's and Moody's Investor Services, provide the rating systems for companies' credit. JUST-IN-TIME (JIT) is a management philosophy that strives to eliminate sources of manufacturing waste and cost by producing the right part in the right place at the right time.
Sub-investment grade bond.
A non-investment grade bond, rated below the top four categories by Moody's or S&P.
A high-risk, high-yield bond, unrated or rated lower than BBB.
a bond that has a higher risk and and a higher return than most other bonds
a fixed-income security that is rated below investment grade by one or more of the major bond ratings agencies
a high risk, high yield debt instrument generally used to finance a leveraged buyout or a merger or financing for many middle-sized firms
Refer to non-investment grade debt securities. Sometimes, these issues are called high yield securities. These securities have credit ratings below Baa/BBB-. . Managing for value Instrument ABN AMRO uses for maximising value. Two relevant connected terms are economic profit and economic value.
Higher yielding, higher risk bonds. These are bonds either issued by solid companies that have fallen upon hard times and lost their investment quality ratings, or have been issued originally with higher than average interest rates by financially troubled companies. New junk bond issues proliferated in the '80s when formerly public companies were taken private by insiders who used junk bonds to pay for the purchase of all outstanding public stock. Junk bonds are rated BB or lower by Standard and Poor's, or Ba and lower by Moody's. Vanguard's High Yield Corporate bond fund, though nominally a "junk bond fund," tends toward higher quality bonds and does not experience the volatility (both up and down) that traditional junk funds do. In strong economic periods, High Yield Corporate tends to lag its peers. But when the economy weakens and most junk funds suffer huge losses, High Yield Corporate remains fairly steady.
A bond with a credit rating of BB or lower by rating agencies. Issuers and holders prefer the securities be called high-yield bonds. Junk bonds are issued by companies without long track records of sales and earnings, or by those with questionable credit strength. Since they are more volatile and pay higher yields than investment grade bonds, many risk-oriented investors specialize in trading them
A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds. Junk bonds are also known as high yield bonds.
A high risk bond that has a low credit rating below investment grade. It therefore offers a high yield to encourage investors. It is judged to have speculative as well as purely investment characteristics.
A high yield bond, rated BB or lower, that has a high default risk.
A bond issued by a corporation with a below-investment rating, but a high yield.
High-risk securities that have received low ratings (ie, Standard & Poor's BBB rating or below; or Moody's BBB rating or below) and as such, produce high yields, so long as they do not go into default.
A bond with a low credit rating. Also known as a high-yield bond because of the reward offered to those who are willing to take on the additional risks of a lower-quality bond.
A non-investment grade bond issued by a company or sovereign borrower. Standard & Poor's investment grade starts at BBB-. With a low or non-existent rating, firms raising money in the bond markets will have to pay a far higher yield than investment grade paper. The so-called junk bond market is much more widely developed in the US than in Europe. Some corporates, especially emerging market corporates are constrained by the sovereign rating of that country, which may itself be non-investment grade.
Junk bonds carry a higher-than average risk of default, which means that the bond issuer may not be able to meet interest payments or repay the loan when it matures. Except for bonds that are already in default, junk bonds have the lowest ratings assigned by rating services.
Corporate debt that offers investors a high rate of interest because of the perceived higher risk of default. Also known as high yield bonds.
This informal title was given to bonds often issued to finance a corporate takeover and characterized by high yield and high risk, with resulting concerns for both the issuing firm and the investor.
Also called high-yield bonds, they are high-risk bonds (rated less than BBB) that are offered by issuers with low bond ratings and, therefore, have a greater chance of default.
Also known as high-yield bonds. Typically, the bonds of companies with less than investment grade credit strength or without proven histories of sales and growth. | back to educate yourself
A bond whose credit rating is below BBB.
A high-risk, non-investment-grade bond with a low credit rating, usually BB or lower; as a consequence, it usually has a high yield.
Another name for a high-yield bond.
A high-risk bond with a low credit rating. These bonds often offer a high yield reflecting the increased risk of the issuer defaulting.
A bond with a speculative credit rating of BB or lower is a junk bond. Such bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody's Investor Services, provide the rating systems for companies' credit.
Bonds rated BB or below by Standard & Poor's Corporation and Ba or below by Moody's Investor Service. Junk bonds tend to be more volatile and higher yielding than bonds with higher quality ratings.
bond with a credit rating of BB or lower by key credit agencies.
A bond with a low investment quality rating. Junk bonds are similar to equities in risk.
a junk bond is a lower-quality bond that offers a higher yield because the risk of default is greater. Generally junk bonds have ratings of ba [Moody's] or bb [Standard and Poors] assigned to them by the rating agencies.
A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high yield bonds. To help defray the inherent risk, bonds offer investors higher yields than bonds of financially sound companies.
High risk, high yielding bonds.
A low quality (rated BB or lower), high risk debt security.
Also called a high-yield bond, one with a quality rating below triple B.
A debt security, also known as a high-yield bond, that pays investors a high interest rate to compensate for its high risk of default.
A debt security issued by an entity whose ability to repay the debt entails the taking of speculative or imprudent risk by an investor.
A weak bond, rated BB or lower, that has a high default risk, and thus carries a high interest rate
These are the lowest quality bonds. Since they are riskier, they yield more. Other, more flattering names for them are "high yield" or "non-investment-grade" bonds. See credit risk.
A debt obligation rated by agencies as Ba, Bb or lower. Junk bonds generally pay interest above the return on more highly rated bonds. They are sometimes known as high-yield bonds.
A high-yield corporate bond issue with a below-investment rating that became a growing source of corporate funding in the 1980s.
Bonds that are considered to be very risky.
Also referred to as a "high yield bond," it is a bond issued by a corporation or government whose ability to pay interest and repay the principal is in question to varying degrees. (Also see high yield bond.)
Junk Bond refers to lower quality bond and is also known as high yield bond, usually with a rating of BB or less. It is not considered to be of investment quality by Wall Street analysts.
A junk bond (or high-yield bond) is one with a S&P credit rating of BB or lower and that carries higher risk of interest or principal default than better rated investment grade bonds. Junk bonds are issued in leveraged buyouts and other takeovers by companies without long track records of sales and earnings, or by those with questionable credit strength.
bond with a speculative credit rating of BB ( S&P) or Ba (Moody's) or lower. Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody's Investor Services, provide the rating systems for companies' credit.
Officially a bond with an investment rating of BB or BA or lower. Company bonds that are rated as such are thought to be higher credit risks so to get investment money they have to offer a greater incentive. This term also is applied to companies who have unproven track records and no credit history.
a bond with a credit rating of BB or lower. Also known as high-yield bonds because of the rewards offered to those who are willing to take on the additional risks of a lower-quality bond.
Bonds that have little or no collateral or liquidation value and are typically very risky. For this risk, they offer a high rate of return. They are issued by corporations without sales and earnings track records, or by those with questionable credit. Moreover, in the 1980s, junk bonds were popular instruments for corporate mergers and acquisitions. The bonds usually have a credit rating of BB or lower. Because the term has an unfavorable connotation, issuers and holders prefer the bonds to be called "high yield bonds." See: Acquisition; Collateral; High Yield Bond; Liquidation; Merger; Rate of Return; Risk; Risk/Reward Ratio
Junk bonds are bonds that are considered high yield but also have a high credit risk. They are generally low rated bonds and are usually bought on speculation, with the investor hoping for the yield, rather than the default. An investor with high risk tolerance may choose to invest in junk bonds.
Bond purchased for speculative purposes. They are usually rated BB and lower, and they have a higher default risk.
A bond rated usually BB or lower because of its high default risk. Also known as a high-yield bond.