High-yield bonds, also known as junk bonds, are corporate debt securities with below-investment-grade credit ratings (typically BB or lower). Because issuers carry a higher risk of default, these bonds pay higher interest rates (yields) to compensate investors for taking on the added credit risk<\/p>\n\n\n\n
When trying to figure out how to invest in high-yield bonds, the first thing you need to do is know what they are all about.<\/p>\n\n\n\n