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high-yield bond

high-yield bond

1 6.3
A loan to a company that pays high interest because it has high risk
  • noun
  • /haɪ-jild bɑnd/
  • Specialized
translation icon : bono de alto rendimiento
  • This is going to go even lower as the fund rolls maturing high-yield bonds into bonds that pay a lower interest rate.
  • high-yield bond market
  • high-yield bond fund
  • portfolio of high-yield bonds

And at first I looked at those companies from a bond perspective, junk bonds, high yield bonds and then equities stocks.

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Examples

  • A debt specialist, Corbat rose to be the head of high-yield bonds and emerging markets at Solly before the firm was merged in a series of acquisitions with Citibank to form Citigroup.

    Blog text (2)
  • And at first I looked at those companies from a bond perspective, junk bonds, high yield bonds and then equities stocks.

  • So if a high yield bond is paying a ton of money, that means you're probably taking a ton of risk, right?

  • No, Jules, it's high-yield bonds.

  • And so he took this tiny little niche market of high yield loans or high yield bonds and made it quite big and sold an awful lot of them.

  • And then I'm not sure what's happening right now, but certainly previously you had the, the Fed buying high yield bonds, like all this stuff that was off the playbook.

  • So foreign bonds and mortgage-backed securities, high grade corporate bank loans, emerging market government bonds and high yield bonds is their lightest weighting.

  • However, if the market comes under sustained pressure and interest rates on high-yield bonds rise, it could present a headwind facing the stock market, according to Martin Fridson, the man known on Wall Street as the "dean of high-yield debt."

    Blog text (6)
  • If you're looking for more income and are willing to take on additional risk, invest in high-yield bonds.

  • Earlier this year, investors couldn't wait to get their hands on risky high-yield bonds.

Synonyms

junk bond
vshigh-yield bond
  • Specialized
33 7.0

A risky loan to a company that pays high interest but may not pay it back

is the formal financial term used in professional contexts

How Risky

high-yield bond
  • Specialized
1 6.3
government bond
  • Specialized
14 2.7

Surface Forms

Morphology

high-yield + bond

The phrase is compositionally built from 'high' + 'yield' + 'bond' and a learner who knows the constituents will readily infer it denotes a bond that pays a high return/interest. The technical nuance that such bonds often have low credit ratings (i.e., 'junk' status) is specialized knowledge, but the core meaning (a bond with high yield) is directly derivable from the parts and follows a common compounding pattern.

Etymology

The compound noun high-yield bond comes from the idea of a bond, a loan that gives a high yield ('a large return'). Riskier borrowers must pay more to get money, so these bonds offer bigger payments but more chance of loss. That's why high-yield bond means 'a risky bond that pays more'.