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.
 Cite this definition
Related Terms
corporate bond, junk bond
'high yield
' appears in the definitions of these terms on BusinessDictionary.comaggressive investment strategy, balanced investment strategy, balanced mutual fund, junk bond, bond ratings, and 
Related Research Articles from the InvestorGuide.com University
Bonds and Your Portfolio
What role should bonds play in your portfolio? Instead of solely looking at their return, learn how to evaluate their benefits due to diversification, stability, consistent income and potential tax advantages.
Other Types of Bonds
Find out about bonds issued by mortgage associations, savings bonds, Brady bonds, as well as those issued by other government agencies, and what the advantages and disadvantages of each type are.
Basic Bond Concepts
Read about the most important fundamental concepts of bonds, including par value, maturity, coupon, nominal and current yield, yield to maturity, and duration. We also explain what the various bond ratings mean.
Featured Sponsor
|
