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 or subsequently. | A high-yield bond is 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. | ||
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Also known as Junk bond. | Also known as a Junk bond. | ||
== See also == | == See also == | ||
* [[An introduction to debt securities]] | |||
* [[Black Friday]] | |||
* [[Bond]] | * [[Bond]] | ||
* [[Credit rating]] | * [[Credit rating]] | ||
* [[Leveraged takeover]] | * [[Leveraged takeover]] | ||
* [[Yield]] | * [[Yield]] | ||
[[Category:The_business_context]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Financial_products_and_markets]] | |||
[[Category:Treasury_operations_infrastructure]] | [[Category:Treasury_operations_infrastructure]] | ||
Revision as of 20:54, 16 February 2019
A high-yield bond is 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 a Junk bond.
