high-yield financing(redirected from High Yield Financing)
The act of financing an activity or broader operation through the issue of junk bonds. These bonds have low credit ratings and have comparatively high risk. As a result, the issuer must pay higher interest rates. High-yield financing is used in some takeover situations where the acquiring company is cash poor.
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See junk financing.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.