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.

Related terms

Junk bond

Understand the meaning and definition of Junk bond in the context of stock market, trading, and investments.

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Bond Long-Term IOU

Understand the meaning and definition of Bond Long-Term IOU in the context of stock market, trading, and investments.

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Inverse Floater

Understand the meaning and definition of Inverse Floater in the context of stock market, trading, and investments.

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Option-Adjusted Spread

Understand the meaning and definition of Option-Adjusted Spread in the context of stock market, trading, and investments.

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Average Tax Rate

Understand the meaning and definition of Average Tax Rate in the context of stock market, trading, and investments.

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Credit Spread

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

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