high yield

Definition
Description of investments with high rates of return. Generally, a high yield bond will be ranked very low by a rating agency, because these are bonds which have a relatively high chance of default, and therefore have to offer higher returns. Similarly, a stock will offer a high dividend yield in order to compensate for lower expected capital gains, for example a large company in a mature industry which is no longer growing.




high yield is ...
... part of the
Bonds subject.


Related Terms

corporate bond -  More
junk bond -  More
variable life -  More
CAT bond, catastrophe bond, structured investment vehicle, jumbo certificate of deposit, conditional call option


high yield appears in the definitions of these other terms on BusinessDictionary.com

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