Skip to main content
Fixed Income

Junk bond

A high yield bond, also known as a junk bond, is a type of bond that offers a higher rate of return due to its higher level of credit risk. This means that the issuer of the bond has a lower credit rating, making it riskier for investors. However, this higher risk also comes with the potential for higher returns. It is important for investors to carefully consider the credit risk associated with high yield bonds before making any investment decisions.

Related terms

Bond Long-Term IOU

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

MORE
Yield Curve

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

MORE
Diversifiable Risk

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

MORE
Liquidity

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

MORE
Prospectus

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

MORE
Inverse Floater

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

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store