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
    Ray Cohane commented a photo 20 minutes ago
    DAILY SELL TARGET HIT
    2.618 downmove will screw that hypothesis read more
  • photo
    Ray Cohane has a new status 23 minutes ago
    Dollar Rally? Looks like the KING is just retracing from Devaluation lows on QE unwind 85 then 89 possible by Nov read more
  • photo
    Sheeda Pastaol created a blog post 2 hours ago
    USDCHF
    read more
  • photo
    Sheeda Pastaol created a blog post 2 hours ago
    GBPUSD Below 1.692 will remain with downside bias...
    read more
  • photo
    martin created a blog post 2 hours ago
    PANIC SETTING IN
    So the world is a dangerous place and we do not live in a perfect world, at least that is what the market says today. The worst day for US stocks sinc... read more