High-yield bond

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High-yield bond

High-Yield Bond

A bond with a low rating. Bonds rated less than Baa3 by Moody's or BBB- by S&P or Fitch are considered high-yield bonds. They have higher yields because they have a higher risk of default on the part of the issuer. High-yield bonds are considered sufficiently high-risk that the law does not allow banks to invest in them. They are also called low-grade bonds, and, informally, junk bonds.

high-yield bond

See junk bond.

High-yield bond.

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

As a result, to attract investors, issuers of high-yield bonds must pay a higher rate of interest than the rates that issuers of higher-rated bonds with the same maturity are paying. The higher rate translates to more income, which is the higher yield.

High-yield bonds may also be described, somewhat more graphically, as junk bonds.

References in periodicals archive ?
Detailed information about Market Vectors US Treasury-Hedged High Yield Bond Index and the full range of Market Vectors Indices, including methodology details and comprehensive data are available on www.
dollar denominated corporate high yield bonds, as represented by The Barclays Capital High Yield Very Liquid Index.
The deal also involved the receipt of consents to the refinancing transaction under the company s senior credit facilities and WAF s outstanding high yield bonds and the simultaneous tender offer to holders of WAF s and the issuer-subsidiary of WIND's parent s high yield bonds that were being refinanced.
Our aim, one we have realized in roughly similar market environments, is to exit near the top of intermediate term high yield bond market prices and re-enter this market at what we perceive to be intermediate price trend lows.
Another key driver of high yield bond activity this year has been the result of the growing perception by investors that the recession has ended and that the economy is improving.
The Fund has also received a 5-star and 4-star Overall Morningstar Rating[TM] for institutional and individual investor class shares, respectively, for the period ended June 30, 2008 out of 476 high yield bond funds based on risk-adjusted returns.
Cryan as portfolio manager of the following: Evergreen Select High Yield Bond Fund (NASDAQ:EHYIX) and several institutional separately managed accounts.
Other benchmarks for Direxion Funds products include the Dow Jones Industrial Average and the returns of 10 year treasury notes, high yield bonds, and commodities.
Remarkably, only the insurance sector of the high yield bond market realized a negative total return for the quarter, attributable to the costly impact on property and casualty insurers of the devastating 2005 hurricane season.
BOSTON -- Evergreen Utilities and High Income Fund (AMEX:ERH), a non-diversified, closed-end equity and high yield bond fund, announced today the final results of its tender offer for up to 5% or 445,117, in the aggregate, of its issued and outstanding common shares, which expired on April 24, 2006.
BOSTON -- Evergreen Utilities and High Income Fund (AMEX:ERH), a non-diversified closed-end equity and high yield bond fund, announced today that its tender offer for up to 5% or 445,117, in the aggregate, of its issued and outstanding common shares, expired today at 5:00 p.
NEW YORK -- Julius Baer Investment Management LLC's (JBIM) Global High Yield Bond Fund, Class A and Class I shares (Tickers: Class A -- BJBHX; Class I -- JHYIX ) received a 5-Star Overall Morningstar Rating(TM), bolstering the fund's position in the high yield investment space.