What Is a High Yield Bond?
High-yield bonds are bonds issued by industrial companies, financial institutions, and public utilities, and listed by at least one independent credit rating agency as below the investment grade and with a coupon rate higher than the investment grade. High-yield bonds have developed greatly since the 1980s. Generally, there are two sources of sources: First, although corporate bonds were investment grade when they were issued, they were subsequently re-evaluated to non-investment grades by rating agencies due to rising risks; second, companies When the bonds were issued, they were deemed by the rating agencies to be non-investment-grade or bonds that were not rated by the major rating agencies at all due to excessive risk. According to the rating requirements of the US Moody's and Standard & Poor's systems, all bonds below Baa3 or BBB-grade are considered high-yield bonds. The reasons for high-yield bonds are: restrictions on companies' access to the capital market under traditional credit rating systems; and capital requirements for corporate restructuring. [1]
High yield bond
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- Chinese name
- High yield bond
- Foreign name
- high-yield bond
- Unit
- Low credit rating company or municipal agency
- Credit rating
- Ba or BB
- High-yield bonds are bonds issued by industrial companies, financial institutions, and public utilities, and listed by at least one independent credit rating agency as below the investment grade and with a coupon rate higher than the investment grade. High-yield bonds have developed greatly since the 1980s. Generally, there are two sources of sources: First, although corporate bonds were investment grade when they were issued, they were subsequently re-evaluated to non-investment grades by rating agencies due to rising risks; second, companies When the bonds were issued, they were deemed by the rating agencies to be non-investment-grade or bonds that were not rated by the major rating agencies at all due to excessive risk. According to the rating requirements of the US Moody's and Standard & Poor's systems, all bonds below Baa3 or BBB-grade are considered high-yield bonds. The reasons for high-yield bonds are: restrictions on companies' access to the capital market under traditional credit rating systems; and capital requirements for corporate restructuring. [1]
- High-yield bond English: high-yield bond. Bonds issued by companies with a low credit rating or a municipal agency whose credit rating is usually below Ba or BB. Due to the poor credit rating, the returns are high, and without risks, the returns will be considerable.