High-yield bond,
Definition of High-yield bond:
Alternative term for junk bond.
High-yield bonds (also called junk bonds) are bonds that pay higher interest rates because they have lower credit ratings than investment-grade bonds. High-yield bonds are more likely to default, so they must pay a higher yield than investment-grade bonds to compensate investors.
Issuers of high-yield debt tend to be startup companies or capital-intensive firms with high debt ratios. However, some high-yield bonds are fallen angels that lost their good credit ratings.
How to use High-yield bond in a sentence?
- High-yield bonds offer investors higher interest rates and potentially higher long-run returns than investment-grade bonds but are far riskier.
- In particular, junk bonds are more likely to default and display much higher price volatility.
- These bonds have credit ratings below BBB- from S&P, or below Baa3 from Moody's.
- High-yield bonds, or "junk" bonds, are corporate debt securities that pay higher interest rates because they have lower credit ratings than investment-grade bonds.
Meaning of High-yield bond & High-yield bond Definition
High-Yield Bond,
How Do You Define High-Yield Bond?
James Chen, CMT, is an experienced trader, investment advisor and global market strategist. He is the author of John Wiley & Sons' books on trade and technology and has been a visiting researcher at CNBC, Bloomberg TV, Forbes and Reuters, among other financial companies.
- High yielding bonds, or junk bonds, are corporate bonds that pay higher interest because their credit rating is lower than high quality bonds.
- These bonds are rated below BBB by S&P or below Baa3 by Moodys.
- High yielding bonds offer investors practically higher long-term returns than high interest rates and high quality bonds, but they are much more risky.
- Junk bonds, in particular, are more likely to default and show greater volatility.
Securities are rated BB or lower, which usually pay a higher rate of return to cover their higher risk. Also known as junk link.
High-Yield Bond refers to These are bonds that usually have a low (or low) credit rating and, due to the high risk of the issuing company, offer higher interest payments than bonds with a higher credit rating. It can also be called a junk email link.
Literal Meanings of High-Yield Bond
High:
Meanings of High:
When food (especially food) starts to spoil, it has an unpleasant odor.
(One letter) is produced with the tongue relatively close to the roof of the mouth.
A very happy or successful moment.
For (long) or in high notes.
(In the game of cards) with the most cards.
Sentences of High
He's not drunk, just a little drunk.
This is candy butter that is used for cooking, it has a slightly pungent smell.
My voice rises with joy.
Synonyms of High
smelly, gamy, on a high, prohibitive, senior, tripping, acme, rank, charged up, noisome, sky-scraping, elevated, hyped up, multistorey, high up, high-level, big, stupefied, gusty, at great height, illustrious, in the sky, exorbitant, pinnacle, malodorous, giant, record, whiffy, strong-smelling
Yield:
Sentences of Yield
I stumbled upon the door of the house
Synonyms of Yield
bow down to, quit, submit to, give in, be overwhelmed, go along with, consent to, be flexible, give up the struggle, permit, admit defeat, grant, bend, comply with, heed, conform to, agree to, capitulate, knuckle under, back down, submit, cave in, raise/show the white flag, surrender, be pliant, give, climb down, be beaten, relent
Bond:
Meanings of Bond:
The connection between two surfaces or objects that come together, mainly through glue, heat or pressure.
Trapped or securely attached to something else, especially by adhesive, heat, or pressure.
Bonding or bonding with chemical bonds.
Sentences of Bond
Neutral molecules are attached to the central atom.
Synonyms of Bond
relationship, commitment, bind, fasten, connect, alliance, union, nexus, connection, word of honour, pledge, solder, troth, compact, bail, understanding, covenant, promise, partnership, fuse, engagement, affiliation, concordat, contract, association, transaction, agreement, paste
