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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 by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds to compensate for the increased risk.
Since it is riskier to buy a bond from a company with bad credit, their bonds are rated below invest-grade and referred to as junk bonds. To mitigate risk for noteholders, companies with low credit ratings that issue bonds must operate within a set of covenants that restrict the issuer's ability to take on further risk.
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Junk bonds are a high-risk investment, but they offer the potential for higher returns than investment-grade bonds. Junk bonds, also known as high-yield bonds, are best suited for investors who ...
This page was last edited on 2 December 2023, at 08:25 (UTC).; Text is available under the Creative Commons Attribution-ShareAlike 4.0 License; additional terms may apply.
Michael Robert Milken (born July 4, 1946) is an American financier. He is known for his role in the development of the market for high-yield bonds ("junk bonds"), [2] and his conviction and sentence following a guilty plea on felony charges for violating U.S. securities laws. [3]
According to Robert Sobel, First Executive was involved in 90% of Drexel's underwritings, which accounted for about $40 billion in bonds from 1982 to 1987. After the State of California took over Executive Life, it sold the company's junk-bond portfolio to Altus Finance, a unit of Crédit Lyonnais , in November 1991 for $3.25 billion.
Junk bonds (1 C, 1 P) S. ... (1 C, 27 P) Pages in category "Bonds (finance)" The following 89 pages are in this category, out of 89 total. ... Wikipedia® is a ...