HIGH-YIELD BOND
A high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.
Based on the two main credit rating agencies, high-yield bonds carry a rating below 'BBB' from S&P, and below 'Baa' from Moody's. Bonds with ratings at or above these levels are considered investment grade. Credit ratings can be as low as 'D' (currently in default), and most bonds with 'C' ratings or lower carry a high risk of default; to compensate for this risk, yields will typically be very high.
Also known as "junk bonds".
POPULAR TERMS
Netting
Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.
Lemming
An investor who follows the crowd in investing without doing any research on his/her investments. Usually, lemming results to significant losses. T ...
Transaction Deposit
Bank deposit that can be immediately withdrawn, transferred, or otherwise transacted by the depositor. Banks are required to maintain reserves on h ...
Value Fund
Value Fund refers to a stock mutual fund that holds stocks, which are believed to be undervalued in price but are likely to be capable of paying di ...
Market Order
Most common way of carrying orders; an instruction or order from a client, via broker or brokerage service, to immediately purchase or sell an inve ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Digesting Financial Statements: Cash Flow
Companies generate money from borrowers and/or borrow money from creditors. Next, firms purchase assets and/or finance projects and programs. Then, ...
Ethical Investing: Niche Investment Style
Over the past two years, sustainable, responsible, and impact investing (SRI) has grown significantly in the United States. Based on the US SIF Fou ...
Retirement Planning: Maximizing the Power of Compounding
“The early bird catches the worm.” – William Camden
How Much Does a Home Remodeling Cost?
If your house can handle a renovation, the next thing you need to find out is the cost of a home remodeling.
You may nee ...
Principles of Trading: Risk Management
It is imperative for traders to master risk management, which includes knowing how much you could lose per trade or over time and evaluating the pe ...
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
05:00 | Credit Card Spending | Mar | |
14:30 | Industrial Product Price Index | Mar | |
14:30 | New Housing Price Index | Mar | |
14:30 | Raw Materials Price Index | Mar | |
16:00 | Consumer Confidence | Apr | |
02:30 | PMI Manufacturing | Apr | |
02:30 | Tertiary Industry Index | Apr | |
02:30 | PMI Composite | Apr | |
08:00 | Public Sector Net Borrowing | Mar |