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In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds to compensate for the increased risk.
That, in turn, has pushed up the yield on corporate bonds, since virtually all forms of lending use Treasury bonds as their benchmark rate. Currently, yields on Aaa corporate bonds have passed 5.1% .
[40] At end of the trading day on 9 March the yield spread for junk bonds reached 6.68% from a low of 3.49% on 6 January, as sellers attempted to lure cautious traders with higher yields. The bonds of firms in the energy sector, who make up about 10% of the total junk bond market and were particularly exposed to the Saudi-Russian oil price war ...
Bond markets are refusing to cooperate, however, as last week’s fixed-income sell-off carried into Monday. The yield on the benchmark 10-year Treasury, which rises as the price of the bond falls ...
Junk bonds are a high-risk investment, but they offer the potential for higher returns than investment-grade bonds. Junk bonds, also known as high-yield bonds, are best suited for investors who ...
The bond market is stealing the spotlight as we turn the corner into a new year that rang in yields not seen since 2007. In October the yield only briefly tapped 5%. In October the yield only ...
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