High-Yield Bond

Business / Taxes / 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.

Other Words for Bond

Bond Verb Synonyms: cement, bind, hold together, stick, cohere
Bond Noun Synonyms: tie(s), shackles, chains, fetters, manacles, handcuffs, trammels, thongs, cord(s), rope(s), restraint(s), constraint(s), check(s), control(s), rein(s)
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Junk Bond

Business / Finance / Junk Bond: A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower. Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & MORE

Investment-Grade Bonds

Business / Finance / Investment-Grade Bonds: A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment-grade bonds as BBB or higher, and Moody's classifies investment grade bonds MORE

Bond Fund

Business / Taxes / Bond Fund: A bond mutual fund sells shares in the fund to investors and uses the money it raises to invest in a portfolio of bonds to meet its investment objective — typically to provide regular income. The ap MORE

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