Risky Investments

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August 25, 2024 3 min read Definitions

Junk Bond: A Speculative Investment with High Risk

Finance Investments Bonds Junk Bonds High-Yield Bonds Credit Rating Risky Investments

Junk bonds, also known as high-yield bonds, have a speculative credit rating of BB or lower by Standard & Poor's and Moody's. These bonds are typically issued in leveraged buyouts and other takeovers by companies with short track records or questionable credit strength.

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