High-yield bond

High-Yield Bond
Financial & Investment Dictionary:
High-Yield Bond
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Definition of
high-yield bond
Stockholding & Investments
high-interest, high-risk bond a bond with a high rate of return, issued on a low-grade security. The issue of such bonds has most commonly been linked with takeover activity.

HIGH-YIELD BOND - Low-rated bonds pose greater risk of default than higher-rated bonds. As a result, th...
HIGH-YIELD SECURITIES - A formal name for junk bonds.

High-Yield Bonds. Bonds that are rated as below investment grade. The issuers of these bonds -- which are judged to be at a higher risk of default -- have to pay an attractive dividend to compensate investors for the additional risk.

High-yield bonds
Lower-quality (or non-investment-grade) bonds, which give a higher yield in return for the investor accepting more risk.
Historic pricing
The pricing of unit trusts based on the last valuation of the fund.

High-yield bonds
A bond with a speculative (below investment grade) credit rating. Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies.

High-Yield Bond: A fund with at least 65% of assets in bonds rated below BBB.
World Bond: A fund that invests at least 40% of bonds in foreign markets.
Emerging-Markets Bond: at least 65% assets in emerging-markets bonds.

High-yield bond
High-yield bonds are bonds whose ratings from independent rating services are below investment grade.

High-yield bond funds invest in lower-rated bonds with higher coupon rates.
Other funds: ...

High-yield bond
Bonds issued by lower-rated corporations, sovereign countries and other entities rated Ba or BB or below and offering a higher yield than more creditworthy securities, sometimes known as junk bonds.
Holding Company ...

high-yield bond: Also referred to as a junk bond, a bond that is rated BB or below by Standard & Poor's, paying a higher interest rate and considered riskier than higher quality bonds.

High-yield bonds feel thaw
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Related Terms ...

HIGH-YIELD BOND FUND A fund that invests primarily in high yield bonds, also referred to as junk bonds. High yield bond funds generally seek high returns and tend to be one of the riskier bond fund investments.

High-yield bonds, sometimes called junk bonds, are issued by corporate entities with below investment grade credit quality. Convertible bonds are a form of corporate bonds that may be converted into stock upon the satisfaction of certain requirements.

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.

A high-risk, high-yield bond rated BB or lower by Standard & Poor's or Ba or lower by Moody's. Junk bonds are issued by relatively unknown or financially weak companies, or they have only limited backing from reasonably solvent companies.

The history of high-yield bonds is nearly as long as the history of public capital markets, with early issuers including General Motors, IBM, J. P. Morgan's U.S.

Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment-grade, properly referred to as high-yield bonds or junk bonds.

This index serves as the benchmark for the TIAA-CREF High-Yield Bond Fund. mid-cap stocks (middle-capitalization stocks) Stocks of companies with market capitalizations between the small cap upper and large cap lower boundaries.

Michael Milken traded high-yield bonds for the firm. He was an unassuming, occasionally obsessive genius who sported a toupee. In 1973, there was hardly a market for his bonds. Firms rarely issued below investment grade bonds.

High-yield bond See:junk bond. Highly leveraged transaction (HLT) Bank loan to a highly leveraged firm. Historical exchange rate An accounting term that refers to the exchange rate in effect when an asset or liability was acquired.

The second category of derivatives that Berkshire has require payouts if certain high-yield bonds default. Berkshire received $3.2 billion up-front cash and has paid out $472 million to cover defaults.

These investments include bonds, especially high-yield bonds; and preferred stocks, which guarantee dividends. Blue-chip stocks often provide income as well, since they are the stocks of large companies that can afford to pay dividends.

A junk bond (or high-yield bond) is one with a S&P credit rating of BB or lower and that carries higher risk of interest or principal default than better rated investment grade bonds.

Although commonly used, the term has a pejorative connotation, and issuers and holders prefer the securities be called high-yield bonds.

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.

On the other end of the spectrum are high-risk investments, such as buying small, lesser-known company stocks or low rated, high-yield bonds.

bearing higher interest rates than even high-yield bonds. They are usually issued along with warrants which are options to purchase stock. This form of debt usually contains about 10-20% of the total capital in an LBO transaction.

High-risk bonds issued by companies with credit ratings below investment grade (a ranking given by the credit rating agencies). Such bonds are also called high-yield bonds as they offer investors higher yields than bonds of financially sound ...

Vulture Fund
A fund that buys securities in distressed investments, such as high-yield bonds in or near default, or equities that are in or near bankruptcy.

corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or
junk bonds. Investors can participate in an lbo through either the purchase of the debt (i.e., purchase of the ...

Investment grade A that is assigned a rating in the top four categories by commercial credit rating companies. Related: High-yield bond
Investment income The revenue from a of invested assets.

In the context of hedge funds, a style of management that focuses on low rated fixed income securities.
High-yield bond
See: Junk bond
Highjacking ...

Junk Bond - A bond rated 'BB' or lower because of its high default risk.
Also known as a "high-yield bond" or "speculative bond".

Issuers offset the higher risk of default on junk bonds by offering substantially higher interest rates than are being paid on investment-grade bonds. That's why junk bonds are also known, more positively, as high-yield bonds.
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Rates ...

Fixed Income Pricing System (FIPS): An automated quotation and trade negotiation system for the high-yield bond market that is operated by the NASD.

is assigned a rating in the top four categories by commercial credit rating companies. For example, S&P classifies investment grade bonds as BBB or higher, and Moodys classifies investment grade bonds as Ba or higher. Related: High-yield bond.

High-yield bond See: Junk bond Highjacking Japanese term for a takeover. Highly confident letter An investment banking firm's letter indicating that the firm is highly confident it will be able to arrange financing for a securities deal.

Related: High-yield bond. Investment history The history of a member firm that establishes certain norms in respect of its investment practice. Investment income The revenue from a portfolio of invested assets.

See also: Banks, Junk bond, Expense, Investment grade, Funding