Definition of Junk Bond
What is a Junk Bond
A junk bond is a corporate debt security that has a lower credit rating as compared to an investment-grade bond but it offers a higher interest rate. The credit ratings of these bonds are below BBB- from S&P or below Baa3 from Moody's.
The primary issuers of junk debt include startup companies or capital-intensive companies with high debt ratios. Some junk bonds are formerly stable companies or fallen angels that lost their good credit ratings.
A junk bond is also known as a high-yield bond.
GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts
The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.
A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.
Benefits of the GlobEx Markets Financial Dictionary
There are several benefits to using the GlobEx Markets financial dictionary, including:
- Clarifying Technical Terminology: The financial world is filled with complex terms and language that can be confusing to those who are not familiar with it. A financial dictionary can help clarify the meaning of technical terms and make them more understandable.
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Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.