High-yield bond: Difference between revisions
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imported>Doug Williamson (Added link to Treasurer's Handbook) |
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== See also == | == See also == | ||
* [[Bond]] | * [[Bond]] | ||
* [[Credit rating]] | |||
* [[Leveraged takeover]] | * [[Leveraged takeover]] | ||
* [[Yield]] | |||
* [[An introduction to debt securities]] | * [[An introduction to debt securities]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Treasury_operations_infrastructure]] | [[Category:Treasury_operations_infrastructure]] | ||
Revision as of 03:21, 19 May 2016
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.
