Junk Bond
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A Junk Bond is a fixed income bond that is rated below investment grade.
- AKA: High-Yield Debt.
- See: Finance, Bond (Finance), Investment Grade, Default (Finance), Credit Event.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/High-yield_debt Retrieved:2014-6-22.
- In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors. Sometimes the company can provide new bonds as a part of yield which can only be redeemed after its expiry or maturity.