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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

High Yield

Definition:

This term refers to bonds, which pay a high level of interest - usually because they have to. That is, they are considered relatively risky. In a prevailing interest rate world where T-Bills are yielding around 3%, grade B bonds might yield 5% and "junk" or high yield bonds might yield 8% and much, much more... and often carry ratings of CCC or worse.

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