Advertising

Junk bond

• long-term secured debt securities that are rated double BB or less. Bonds that are not investment quality. Investment quality bonds are BBB or greater.

• A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high yield bond. Such bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody's investor Services, provide the rating systems for companies' credit.

• High-risk bonds that have low credit ratings or are in default.

• Bond purchased for speculative purposes. They are usually rated BB and lower, and they have a higher default risk.

 
 

Follow this link for all the terms related to bond.

 
 Embedded terms in definition
 Agencies
Bond
Credit
Debt securities
Debt
Default risk
Default
High yield bond
High yield
Investment quality
Investor
Offer
Ratings
Rating
Risk
Secured debt
Secured
Securities
Yield
 
 Related Terms
 

<< Junior debt subordinate debt Junk bonds >>

"Green" Banking: Saving the Environment as You Save and Borrow Money: You're probably already recycling paper, glass and plastic. But did you know you also may be able to help save the environment as you do your banking? Here are options that may be available from your bank. More...

Some of the world's greatest feats were accomplished by people not smart enought to know they were impossible. Doug Larson

Advertising



Copyright 2009-2018 GVC. All rights reserved.