What is the definition of High-Yield Bonds?
Lower-rated bonds, or bonds rated below investment grade quality (also known as “junk bonds”) as determined by the various ratings agencies. The exact determination of whether a bond is below investment grade can differ among the agencies. These bonds typically have higher yields than investment grade bonds but also have higher credit risk, or risk that the issuer will not pay the interest and/or principal when it is due. High yield bonds generally fluctuate more in value than investment grade bonds.
