high-yield bond
Also known as junk bonds. bonds rated by credit rating agencies as sub-investment grade (in other words, below BBB in the case of Standard & Poor's or below BAA in the case of Moody's). They tend to be fixed rate, with maturities of seven to ten years, usually with a bullet repayment at maturity. Some issues are structured as discount notes, that is, they do not pay cash interest for an initial period and are therefore issued at a discount to their final redemption value.
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USA
Also known as high-yield debt and junk bonds.
In finance, a high-yield bond, non-investment grade bond, speculative grade bond or junk bond is a bond that is rated below investment grade at the time of purchase. See credit rating. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds to make them attractive to investors.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • High-Yield Bond — A high paying bond with a lower credit rating than investment grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds. Based on the two main… …   Investment dictionary

  • High Yield Bond — Schrottanleihen bzw. Junk Bonds sind Wertpapiere die auch als High Yield Anleihen bezeichnet werden. Es handelt sich dabei um Anleihen von Emittenten, die durch Ratingagenturen eine schlechte Bewertung erhalten haben (definitionsgemäß im Bereich… …   Deutsch Wikipedia

  • high-yield bond — noun a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit • Syn: ↑junk bond • Hypernyms: ↑bond, ↑bond certificate …   Useful english dictionary

  • High-yield bond — See:junk bond. The New York Times Financial Glossary …   Financial and business terms

  • high-yield bond — See: junk bond …   Financial and business terms

  • high-yield bond — /ˌhaɪ ji:ld bɒnd/ noun same as junk bond …   Dictionary of banking and finance

  • High-Yield Bond Spread — The percentage difference in current yields of various classes of high yield bonds (often junk bonds) compared against investment grade corporate bonds, Treasury bonds or another benchmark bond measure. Spreads are often expressed as a difference …   Investment dictionary

  • HIGH-YIELD BOND FUNDS - фонды высокодоходных облигаций — рисковые взаимные фонды облигаций, инвестирующие в высокодоходные ( мусорные ) облигации компаний с низким кредитным рейтингом …   Глоссарий финансовых и биржевых терминов

  • high yield debt — high yield debt/high yield bonds Also known as junk bonds. bonds rated by credit rating agencies as sub investment grade (in other words, below BBB in the case of Standard & Poor s or below BAA in the case of Moody s). They tend to be fixed rate …   Law dictionary

  • high yield bonds — high yield debt/high yield bonds Also known as junk bonds. bonds rated by credit rating agencies as sub investment grade (in other words, below BBB in the case of Standard & Poor s or below BAA in the case of Moody s). They tend to be fixed rate …   Law dictionary

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