high-yield bond

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Related to High-yield bonds: Junk bonds
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Noun1.high-yield bond - a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit
bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal
References in periodicals archive ?
The US platform also offers Deutsche X-trackers High Yield Corporate Bond-Interest Rate Hedged ETF (Bats: HYIH), which provides exposure to high-yield bonds while potentially reducing the interest rate risk in an investment portfolio.
High-yield bonds, sometimes referred to as "junk bonds," are non-investment grade debt with a Ba1/BB+/BB+ or below rating using rating system of Moody's Investors Service, Fitch Ratings, or Standard & Poor's.
Currently, high-yield bonds--IOUs issued by companies with dubious credit ratings--yield about 5%, which isn't high by anyone's standards, including those who manage high-yield bond funds.
Treasuries than investment-grade bonds are the primary reason high-yield bonds tend to be less sensitive to interest rate movements.
According to several asset managers/advisers, insurers have turned to high-yield bonds, bank loans with floating rates, mezzanine debt, mortgage trading securities and global infrastructure securities.
Figures indicate that the percentage of high-yield bonds trading at distressed levels has dropped in the US.
In percentage terms, the projections from the three main credit-rating agencies for defaults on high-yield bonds approach levels last seen in 1933, according to an 87-year default-rate history compiled by Moody's Investors Service.
High-yield bonds, better known as junk bonds because of their low credit rating and low sensitivity to interest rates, were added, with a smattering of mutual funds that invest in bonds overseas.
A controversy has arisen concerning the implicit equity component of high-yield bonds.
But purchasing high-yield bonds will increase the risk/reward mix of your portfolio.
CFOs can maximize shareholder value while remaining independent by using the same tools that raiders use: divestitures and high-yield bonds.
High-yield bonds are not suitable for all investors and the risks of these bonds should be weighed against the potential rewards.