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What are the benefits of high yield bonds?

Updated: 8/20/2019
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10y ago

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The best benefits of high yield bonds are they are issued by low credit organizations, they are a leading agency, and they work to protect your debt .

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Q: What are the benefits of high yield bonds?
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Related questions

Where can one find high yield municipal bonds?

Someone that is looking for information on high yield municipal bonds, can do so by researching with websites such as About, Wikipedia, as well as Learn Bonds.


Why do junk bonds have high yield?

They also have high risk.


What is a high yield savings bond?

High Yield Savings Bond describes bonds that have high rates of return. These bonds are usually ranked low as they have a higher chance of defaulting.


What is the risk involved with high yield bonds?

The major risk with high yield bonds is losing all of your money you invest. These type of bonds have a very low rating much lower that the investment grade.


What are the risks and benefits of buying junk bonds?

One advantage of purchasing junk bonds is it allows one to diversify investments over a larger group of different assets. The biggest benefit is they carry a high yield. However, junk bonds are also very high risk.


What word often describes high-yield bonds?

Junk


What broker should I talk to about high yield?

You should contact your personal asset manager,who will best advise you on high yield bonds.


What are the bond types from lowest to highest yield?

The different types of bonds includes Treasury bonds which are released by US government. Agency bonds which are issued by organizations registered or affiliated with US Federal government, municipal bonds which are issued by counties or cities have medium to low yield, Corporate bonds which are issued by companies, have high yields, high yield bonds which are issued by corporations.


Are high yield bonds safe and and are they insured by the Federal Government?

High-yield bonds are risky because they have lower credit quality and there are several events that could cause the price to decrease. They are not insured by the Federal Government.


What are the pros and cons of investing in high yield bonds?

The pros of having high yield bonds are that you can make a lot of money off of the interest if the company does well. The cons are that there is no way of predicting the outcome, and it takes a lot of money to start.


What are some benefits of a high yield checking account?

A high yield checking account will allow you to make more interest off of your money provided that you have enough money invested to qualify for a high yield account.


What is the meaning of high yield corporate bonds?

High yield corporate bonds are issued by organizations that do not qualify for investment-grade ratings by credit rating agencies. These bonds are sold to raise capital for various purposes. The issuer agrees to pay interest and also return the face value of the bond.