Feedback

Forex Glossary

Junk Bond

A junk bond is a fixed-income security that is rated below investment grade (BB or lower) by one or more of the major bond ratings agencies. Bonds often receive this type of low rating when the corporation, municipality or other entity that issued the bond has a high risk of default. When the credit risk on the bonds is high, there is a relatively decent chance that the junk bond issuer will have trouble fulfilling its repayment obligations (including interest and principal).

However, many junk bonds also pay higher yields than investment-grade bonds in order to attract investors. For this reason a junk bond is also referred to as a high yield bond.


Related Terms


Forex DVD Package

PACKAGE: 500$ for the 4 DVD sets

You'll pay 27% less! Don't miss it

Network Activity

  • photo
    John E. Putman II View Activity 20 minutes ago
    You're not kidding on the fast UJ. haha... Thing brutalized me. Had decent offsets though so the damage was minimal. Time to sit back and evaluate for... read more
  • photo
    John E. Putman II commented a blog post 24 minutes ago
    Tuesday position update
    Just a quick recap. read more
  • photo
    Octavio Dolores created a blog post 32 minutes ago
    Updated Xau/Usd (September 2)
    The idea is still valid. The potential reversal zone remains valid. You should examine the level just where to draw a yellow box. It is also possible... read more
  • photo
    Daologic commented a blog post 52 minutes ago
    Tuesday position update
    You will get your money back, you just need a bit ...a bit more patience... read more
  • photo
    John E. Putman II commented a blog post 53 minutes ago
    Tuesday position update
    I've got some friends who specialize in building tube amps... you can't get better than vinyl through tubes. read more