High-yield bond: Difference between revisions
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A bond with a sub-investment (speculative) grade credit rating at the time of issue. | A bond with a sub-investment (speculative) grade credit rating at the time of issue. | ||
This type of bond is used particularly to finance leveraged buy-outs and to pay higher yields to investors than bonds with higher ratings do. The term, therefore increasingly refers to financial instruments with speculative credit ratings. | This type of bond is used particularly to finance leveraged buy-outs and to pay higher yields to investors than bonds with higher ratings do. | ||
The term, therefore increasingly refers to financial instruments with speculative credit ratings. | |||
Also known as Junk bond. | Also known as Junk bond. | ||
== See also == | == See also == | ||
* [[Bond]] | * [[Bond]] | ||
* [[Leveraged takeover]] | * [[Leveraged takeover]] | ||
Revision as of 11:05, 27 August 2013
A bond with a sub-investment (speculative) grade credit rating at the time of issue.
This type of bond is used particularly to finance leveraged buy-outs and to pay higher yields to investors than bonds with higher ratings do.
The term, therefore increasingly refers to financial instruments with speculative credit ratings.
Also known as Junk bond.
