Understanding High-Yield Bonds

High-yield bonds, often referred to as “junk” or “speculative grade,” are corporate bonds that command a higher interest rate than other bonds. This higher yield is essentially compensation for the increased risk of default that investors assume when purchasing these securities. Credit rating agencies including Moody’s, Fitch, and Standard & Poors determine whether a bond [...] The post Understanding High-Yield Bonds appeared first on ETF Trends .