For Junk Bonds we have terms and definitions in 5 topics. The topics are Accounting, Accounting Terms, Financial, Homeowners Insurance and Insurance.

Junk Bonds (Accounting)

DEBT SECURITIES issued by companies with higher than normal credit risk. Considered "non-investment grade" bonds, these SECURITIES ordinarily yield a higher rate of interest to compensate for the additional risk.

Junk Bonds (Accounting Terms)

DEBT SECURITIES issued by companies with higher than normal credit risk. Considered "non-investment grade" bonds, these SECURITIES ordinarily yield a higher rate of interest to compensate for the additional risk.

Junk Bonds (Financial)

Refer to non-investment grade debt securities. Sometimes, these issues are called high yield securities. These securities have credit ratings below Baa/BBB-. Refer to non-investment grade debt securities. Sometimes, these issues are called high yield securities. These securities have credit ratings below Baa/BBB-.

Junk Bonds (Homeowners Insurance)

These are bonds issued by companies whose financial condition is considered risky. Because of the high risk, junk bonds typically offer higher yields than bonds issued by corporations with superior credit ratings. Junk bonds generally hold the lowest ratings assigned by rating services like Moody's Investors Services and Standard and Poor's.

Junk Bonds (Insurance)

Corporate bonds with credit ratings of BB or less. They pay a higher yield than investment grade bonds because issuers have a higher perceived risk of default. Such bonds involve market risk that could force investors, including insurers, to sell the bonds when their value is low. Most states place limits on insurers’ investments in these bonds. In general, because property/casualty insurers can be called upon to provide huge sums of money immediately after a disaster, their investments must be liquid. Less than 2 percent are in real estate and a similarly small percentage are in junk bonds.

Similar

Browse words that start with:

• Ju
• Jun
• Junk
• Junk

Browse All Terms by First Letter

Term Search