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. These bonds have a higher risk of
default or other adverse
credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors. Sometimes the company can provide new bonds as a part of yield which can only be redeemed after its expiry or maturity.