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Fixed Income

High-Yield Bond

A bond with a high yield that is attributed to a substantial level of credit risk is known as a high-yield bond. This type of bond is often referred to as a "junk bond" due to its lower credit rating. This means that the issuer has a higher probability of defaulting on the bond's payments, making it a riskier investment. However, with higher risk comes the potential for higher returns, making these bonds an appealing option for some investors.
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A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used
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