Term of the Day: High-Yield Bond

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	INVESTOPEDIA Term Of The Day June 16, 2015 High-Yield Bond A high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds. Based on the two main credit rating agencies, high-yield bonds carry a rating below 'BBB' from S&P, and below 'Baa' from Moody's. Bonds with ratings at or above these levels are considered investment grade. Credit ratings can be as low as 'D' (currently in default), and most bonds with 'C' ratings or lower carry a high risk of default; to compensate for this risk, yields will typically be very high. Also known as "junk bonds". Investopedia Explains: All "junk" connotations aside, high-yield bonds are widely held by investors worldwide, although most participate through the use of... Read More Articles Related to "High-Yield Bond" Spotting A Market Bottom Stock market bottoms can be challenging to spot. And many times, investors think that they have found this point... Read More What's a High-Yield Bond? A high-yield bond is a bond issued by a company with a very low credit rating. The yield is high because investors demand a higher return to... Read More Are High-Yield Bonds Too Risky? It may surprise you to know that some of the top companies in the Fortune 500 have had debt obligations that were below investment grade... Read More Recently Added Definitions Schumer Box A table that appears in credit card agreements showing basic information about the card's rates and fees. The Schumer box shows information about the card's... Read More Batch Credit Card Processing The process of a merchant processing all of its authorized credit card transactions for the day after the close of business or at a time... Read More Related Definitions Funding Currencies Bond Valuation Basis Point (BPS) Junk Bond Investment Grade Hot Definitions Convention Statement Enterprise Value (EV) Nonadmitted Balance Earned Premium Best's Capital Adequacy Relativity (BCAR) You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: