High-yield Bond (or Junk Bond)

{
  "id": "MLC-T-FIN-000189",
  "term": "High-yield Bond (or Junk Bond)",
  "field": "Finance and investing",
  "definition": "Bonds that are believed to have a higher risk of default and receive low ratings by credit rating agencies, namely bonds rated Ba or below (by Moody's) or BB or below (by S&P and Fitch). These bonds typically are issued at a higher yield (for example, a higher interest rate) than more creditworthy bonds, reflecting the perceived higher risk to investors.",
  "references": [
    "SEC Investor.gov Glossary"
  ],
  "url": "https://mlchart.com/terminology/finance/high-yield-bond-or-junk-bond/"
}