answersLogoWhite

0

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.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What is the average yield of high grade corporate bonds?

The average yield of high grade corporate bonds is typically around 3-5.


What is the bond types from lowest to highest yield?

From lowest to highest yield, the typical bond types are: US Treasury bonds, US corporate bonds, municipal bonds, high-yield bonds, and emerging market bonds. The order is generally based on the credit risk associated with each type of bond, with US Treasury bonds considered the safest and typically offering the lowest yield.


What are the key differences between JNK and HYG?

The key differences between JNK and HYG are that JNK is an exchange-traded fund (ETF) that focuses on high-yield corporate bonds with lower credit ratings, while HYG is also an ETF but it tracks a broader range of high-yield corporate bonds with higher credit ratings.


What do I need to know about high yield investments?

Yes, high yield investments which are also called junk bonds, are quite risky and that is why they pay higher yields. Safer investments will have lower yields, and include AAA and AA rated corporate bonds, government bonds, as well as Certificates of Deposit (CDs) among others.


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 are the benefits of high yield bonds?

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 .


What will happen to ford motor credit bonds?

Ford motor credit bonds are quotes are enclosed. You can compare the Ford yields, ratings and maturities to other corporate bonds to make a more informed decision. http://investment-income.net/rates/high-yield-bonds-rate-page


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.


Where can find wachovia high yield bond fund index?

Check out Invesco Powershares High Yield Corporate Bond Portfolio which replicates Wachovia High Yield Bond Index. Rambo


What word often describes high-yield bonds?

Junk

Trending Questions
How can I write off investment losses on my taxes? What does your efforts paid off mean? What is the fixed rate percentage for a RBS mortgage? What is the meaning of source of funds? What is the value of a 1957 blue seal silver certificate that is worn? What is the total cost of the vehicle including the CPO fee? Will it help your credit if you dismiss your Chapter 13 bankruptcy and start making payments to your creditors? Can you get money back for cancelling a life insurance policy? If your car is repossessed do you have to pay the balance? Do municipal bonds have a fixed or flexible interest rate? What do you call a person who fixes glass in windows? You will close on your refinance in 8 days and you have not paid this months mortgage Should you pay it Payment was due on the first and it is not the 13th The refinance will close on the 20th.? What entity ensured bank deposits up to 5000 dollars? Responsibilities of a professional manager? What are some common Craigslist car scams to watch out for when buying a vehicle online? What are the benefits of investing in a life annuity insurance policy for long-term financial security? Does the IRS take priority over unsecured credit when it comes to wage garnishments in New York state? How can I safely and securely deposit a business check into my personal account? Which three major types of management control should be effected when undertaking operations in an organization? What is the difference between person fund vs account fund?