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Fixed Income Instruments

Non-investment Grade/ High Yield Bonds

In the world of finance, bonds are often classified based on their credit ratings. Those that fall below the Baa3 or BBB- rating are deemed non-investment grade. This is due to the potential for the issuer to default, making these bonds riskier but with the allure of higher yields. They are commonly referred to as speculative or high-yield bonds. It is important for investors to consider the level of risk they are willing to take on when considering these types of bonds.

Related terms

Current Yield

Understand the meaning and definition of Current Yield in the context of stock market, trading, and investments.

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Redeemable Debentures

Understand the meaning and definition of Redeemable Debentures in the context of stock market, trading, and investments.

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Secured Debentures

Understand the meaning and definition of Secured Debentures in the context of stock market, trading, and investments.

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Secured Bonds

Understand the meaning and definition of Secured Bonds in the context of stock market, trading, and investments.

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Credit Risk

Understand the meaning and definition of Credit Risk in the context of stock market, trading, and investments.

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Floating Rate Bonds

Understand the meaning and definition of Floating Rate Bonds in the context of stock market, trading, and investments.

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