Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Refinance Your Mortgage if You Can Cut At Least One Point

Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

High Yield Corporate Bonds

You are bound to have heard mention of high yield corporate bonds. Your investor friends are sure to have related stories about fortunes earned on the backs of them during the financial boom times. But what exactly are these high yield bonds and why isn't everybody investing in them?

All bonds are debt securities issued by organisations to raise capitals for a variety of purposes. When you buy a bond, you are essentially lending your money to the company/government/body that issues it. In return for your money, they issuer agrees to pay you interest and ultimately to return the principal - the money loaned - when the bond matures, at a date in the future that you both agree on.

Although all bonds work along this principle, not all bonds are the same. Bonds are rated by credit rating agencies. The main ones are Moody's Investors Service, Standard and Poor's Ratings Services and Fitch Ratings. They rate bonds on a scale from A to D, AAA being the safest and D the riskiest.

Investment grade bonds are those that score a BBB or higher on this scale. They are considered to be reliable. High-yield bonds do not qualify for this rating, which means that they have a greater risk of default. They may not pay interest or the principal in a timely manner.

Such a rating makes investors wary and as a result the companies must do their utmost to entice them. What they do is they pay a higher interest rate to attract investors and to compensate them for the risks involved in investing in organisations of lower credit quality.

In short, high yield corporate bonds constitute a gamble. The bonds have been deemed to be risky by the financial experts but there is substantial money to be gained from investing in them. If you bet on high yield financial bonds and gain, you stand to gain quite a lot. However, if you lose, you can end up losing everything.

The clue is in the name. There is potential for high yield but there is also a potential for risk and loss. The choice is yours to make but you can't say that you haven't been warned.

Discuss It!
1 2 >||| said:

The clue is in the name. There is potential for high yield but there is also a potential for risk and loss. The choice is yours to make but you can't say that you haven't been warned.

richestcelebrities.org said:

I will make an indicate bookmark your site for entire arrangement examining through.

this page said:

Hail your work and keep offering your information.Your web diary offered us to gigantic to work with. Every single tips of your post are stunning.

https://www.youtube.com/watch?v=9c9u3wmkzdE said:

I beginning late pursue a brief timeframe your article and have been looking.

vivavideo apk said:

vivavideo for pc

Rex Rowland said:

You will be able to favored point of view such a stunning aggregate from the work here. The decisions are obvious with this.

manabadi 10th results 2017 said:

You have made an unbelievable appearing. I will tunnel it and before long grasp to my embellishments.

Biography of your beloved Celebs said:

Really I didn't knew about this topic.Thanks for writing this informative article.

Zurvita Zeal for Life reviews said:

I was in central need to get a few data concerning this matter and in light of you, I have that !

https://www.energyadviceline.org.uk/l-business-electricity-price-comparison.php said:

This is truly a striking perused for me. I have bookmarked it and I am countering looking articles. Continue doing momentous I've been sat tight for so long.

GTA San Andreas Android Cheats said:

The producer have regard it to an astounding degree well and have inconceivable finding a couple approaches concerning it.

diy dice tower said:

I think this is a lighting up post and it is to an awe-inspiring degree key and learned.

Outsourced Support said:

I unmistakably getting a charge out of each and every piece of it. It is an amazing site and befuddling offer.

allonlinetips.com said:

I every now and then read some new articles on the off chance that I discover them confounding.

free tour stockholm said:

I am genuinely getting endeavored to over this data, is to a stunning degree key my extra.

getessaynow.com/write-my-essay said:

It is a perplexing site and grand offer.Keep up the goliath I found your site perfect for me. It joins mind blowing and fundamental posts.

Bajuband designs 2017 said:

I think this is unique article i feel so great while reading this post.thanks to post this informative article.

instagram followers | instagram likes said:

As your supporters gather, more people can find your page and you will continue creating and manufacturing an excellent notoriety.

http://apunkaindia.com/best-whatsapp-status/ said:

Really Nice and very excited to bookmark this for future. Thank you very much !!

Whastapp Status said:

AMAZING http://apunkaindia.com/best-whatsapp-status/

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Insider Selling

Insider Selling - Insider selling typically means the running for the hills. It could simply mean company, or corporate executives borrowed too much. Many investors sell more held stock certificates because they are forced to, rather than because these investors want to. The corporate stock certificate investor's insider sales are...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com