Club deal and High-yield bond: Difference between pages

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.

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-. ''Loans''.
+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.
-A syndicated loan in which the (initial) members of the syndicate are each requested by the borrower. In such cases there is an agent bank but not necessarily an arranging (or managing) bank although larger lenders may be allocated such a title in order to justify additional fees.
+The term, therefore increasingly refers to financial instruments with speculative credit ratings.
-. ''Private equity''.
+Also known as Junk bond.
-A transaction in which a number of private equity firms jointly undertake a buyout larger than any of them would wish to undertake alone.
 == See also ==
-* [[Agent bank]]
+* [[Bond]]
-* [[Syndicated loan]]
+* [[Credit rating]]
+* [[Leveraged takeover]]
+* [[Yield]]
+* [[An introduction to debt securities]]
-[[Category:Bank_Lending]]
+[[Category:Long_term_funding]]
+[[Category:Treasury_operations_infrastructure]]