A bond (an instrument of debt) which is considered below "investment grade" due to a significant risk of default by the issuer. The interest rate is higher in order to compensate holders for that risk
A bond with a speculative credit rating of BB ( S&P ) or Ba (Moody's) or lower Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies Two agencies, Standard & Poors and Moody's Investor Services, provide the rating systems for companies' credit
A bond with a low credit rating Also known as a high-yield bond because of the reward offered to those who are willing to take on the additional risks of a lower-quality bond
~ A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds; sometimes known as high-yield bonds
A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds; sometimes known as high-yield bonds
If a company issues junk bonds, it borrows money from investors, usually at a high rate of interest, in order to finance a particular deal, for example the setting up or the taking over of another company. A corporate bond having a high yield and high risk. a bond which has a high risk and is often sold to pay for a takeover. Bond paying a high yield but also presenting greater risk than comparable securities. Junk bonds can be identified through the lower grades assigned by rating services (e.g., BBB instead of AAA for the highest quality bonds). Because the possibility of default is great, junk bonds are usually considered too risky for investment by the large institutional investors (savings and loan associations, pension funds, insurance companies, and mutual funds) that provide U.S. corporations with much of their investment capital. Junk bonds are often issued by smaller, newer companies
A bond claimed to have high yield, a low investment quality and credit worthiness, usually with a rating of BB or less
A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies Two agencies, Standard & Poors and Moody's Investor Services, provide the rating systems for companies' credit
Slang for a high-risk security that has received low ratings and thus produces high yields as long as it doesn't go into default
high-yielding bond issued by less secure companies; also used to finance leveraged buy-outs
A bond with a speculative credit rating of BB or lower is a junk bond Such bonds offer investors higher yields than bonds of financially sound companies Two agencies, Standard & Poor's and Moody's Investor Services, provide the rating systems for companies' credit
Bonds with lower than investment grade ratings A bond with a speculative credit rating of BB or lower is a junk bond Such bonds offer investors higher yields than bonds of financially sound companies Two agencies, Standard & Poors and Moody's Investor Services, provide the rating systems for companies' credit
a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit
A high-yield corporate bond issue with a below-investment rating that became a growing source of corporate funding in the 1980s
Bonds rated BB or below by Standard & Poor's Corporation and Ba or below by Moody's Investor Service Junk bonds tend to be more volatile and higher yielding than bonds with higher quality ratings
A high-yielding corporate bond that is issued by a distressed company These are securities rated BBB or lower Junk bonds have a high risk of default Also called high-yield bonds
A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds Junk bonds are also known as high yield bonds
A speculative bond rated below investment grade (BB or below for Standard & Poor's, and Ba or below for Moody's) Also called below investment-grade bonds, these bonds are generally issued by a corporation of questionable financial strength or without a proven track record Below investment-grade bonds tend to be more volatile and provide higher yields than do bonds with superior ratings
In some cases, the term "junk bonds" is used to refer to all high-yield bonds--i e , those that are rated below investment grade or are not rated In other cases, the term refers to the lower tiers of high-yield bonds in credit quality Many of today's high-yield bonds, particularly those rated Ba by Moody's or BB by other rating agencies, are not considered "junk "
A bond with a low investment quality rating Junk bonds are similar to equities in risk
These are the lowest quality bonds Bonds with credit ratings below BBB from Standard & Poor's or Baa from Moody's Investor Services are considered "junk" because they have a greater chance of default than investment grade bonds Junk bonds are usually issued by smaller companies without long track records or by companies with questionable credit ratings To compensate for the additional risk, issuers offer higher yields than investment-grade bonds In recent years, however, junk-bond yields have declined as their popularity has increased and default rates have slowed Also called high-yield bonds See "Types of Bonds " BACK TO TOP
A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high yield bond Such bonds offer investors higher yields than bonds of financially sound companies Two agencies, Standard & Poors and Moody's investor Services, provide the rating systems for companies' credit
~ A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds; sometimes known as high-yield bonds
Bond with a credit rating of BB or lower by rating agencies Although commonly used, the term has a pejorative connotation, and issuers and holders prefer the securities be called high-yield bonds Junk bonds are issued by companies without long track records of sales and earnings, or by those with questionable credit strength
Junk bonds are bonds that are considered high yield but also have a high credit risk They are generally low rated bonds and are usually bought on speculation, with the investor hoping for the yield, rather than the default An investor with high risk tolerance may choose to invest in junk bonds