Low-rated bonds pose greater risk of default than higher-rated bonds. As a result, their issuers must pay investors a higher rate of interest to offset that risk, which, in turn, produces a higher yield. These' High-yield bond's are also described, somewhat more graphically, as junk bonds.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). high-yield bond. Retrieved September 25, 2026, from http://smartdefine.org/high-yield_bond/definitions/1155417 |
| Chicago | Barry Goldsmith. 2010. "high-yield bond" http://smartdefine.org/high-yield_bond/definitions/1155417 (accessed September 25, 2026). |
| Harvard | Barry Goldsmith 2010, high-yield bond, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/high-yield_bond/definitions/1155417>. |
| MLA | Barry Goldsmith. "high-yield bond" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/high-yield_bond/definitions/1155417> |