high-yield bond

Stockholding & Investments

high-interest, high-risk bond a bond with a high rate of return, issued on a low-grade security. The issue of such bonds has most commonly been linked with takeover activity.

Related definitions of "high-yield bond"

Also called junk bond

Recommended Further Reading (Term count)

Forecasting Default Rates and the Credit Cycle
by Martin S. Fridson
Cycles play a major role in analysis aimed at achieving superior investment returns. Stock market participants base their valuations on corporate earnings, which fluctuate with the business cycle. The interest rate cycle strongly influences the performance of high-quality fixed-income assets, such as government bonds and mortgage-backed securities. Similarly, investors in corporate bonds, for which the risk of default is a material factor, can...
The Role of Institutional Investors in Corporate Financing
by Hao Jiang
Institutional investors have become increasingly important in global capital markets. As of the end of December 2007, total assets under management by major global institutional investors reached US$81.90 trillion. In particular, mutual funds, pension funds, and insurance companies managed US$26.2, 28.2, and 19.9 trillion of assets, respectively, while assets managed by nontraditional managers such as hedge funds, sovereign funds, and private...
Trading in Corporate Bonds: Why and How
This checklist outlines why and how corporate bonds are traded.
Hedge Fund Challenges Extend Beyond Regulation
by Kevin Burrows
Victim Rather than VillainThe hedge fund sector has been vilified by some politicians, both in Europe and in the US, as if it were a significant contributor to the banking collapse and subsequent global recession. In reality, the hedge fund industry was very much a victim of the banks during the latter half of 2008, and there are some significant litigation actions pending, in which hedge funds are suing investment banks for alleged misdealings...

Definitions of ’high-yield bond’ and meaning of ’high-yield bond’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’high-yield bond’ and other financial terms with our online QFINANCE Financial Dictionary.