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high-yield bond

 

Definitions from WordNet

Noun high-yield bond has 1 sense
  1. junk bond, high-yield bond - a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit
    --1 is a kind of bond, bond certificate

Definitions from the Web

High-yield bond

A high-yield bond, also known as a junk bond, is a type of fixed-income investment that offers a higher yield than investment-grade bonds.

Usage:

1. Noun - Finance: A high-yield bond is a risky investment option that provides investors with higher returns compared to bonds with higher credit ratings.

Example sentence: Many investors are attracted to high-yield bonds due to their potential for earning higher interest rates.

2. Adjective: A high-yield bond fund is a mutual fund that invests in a diverse portfolio of high-yield bonds.

Example sentence: The risk-averse investor decided to invest in a high-yield bond fund to diversify their portfolio.

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