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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.

 
 

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 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
 
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