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 or subsequently. | ||
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. | 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. | ||
Revision as of 20:19, 1 June 2016
A bond with a sub-investment (speculative) grade credit rating at the time of issue or subsequently.
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.
