Junk Bonds are bonds that are rated below investment grade by S&P or Moody’s. This lower rating is indicative of a higher risk of default, and therefore the debt carries a higher coupon or yield than investment grade bonds.
Junk Bonds are bonds that are rated below investment grade by S&P or Moody’s. This lower rating is indicative of a higher risk of default, and therefore the debt carries a higher coupon or yield than investment grade bonds.