Financial Services:Financial services in Lewisville TX USA
Lewisville, TX, USA
Home
Forex Blog
Site Map
Site Search
Learn Forex
Learn FX Trading
FX Trading Solutions
Trading Information
Mini FX Accounts
More Forex Resources
Currency Exchanges
Banks - Aa to Che
Banks - Chi to For
Banks - Fou to Lar
Banks - Las to Nor
Banks - Nor to Sal
Banks - Sal to Tyl
Banks - Uni to Yum
Investments
Investments II
Deutsch
Deutsch 2
Español
Español 2
Français
Français 2
Italiano
Italiano 2
Nederlands
Nederlands 2
Nihongo
Nihongo 2
Polski
Polski 2
Svenska
Svenska 2
Português
Português 2
Norsk
Hangungmal
Hangungmal 2
Russkiy Yazyk
Russkiy Yazyk 2
Billionaires
Pinyin
Pinyin 2
Greek
Suomeksi
Suomeksi 2
Suomeksi 3
Suomeksi 4
Stock Brokers
Venture Capital
Refinance

XML RSS
What is this?
Add to My Yahoo!
Add to My MSN
Add to Google
 

high yield investments


High yield investments are typically investments into so called "junk" bonds, that have a low credit quality rating and high expected bond yield.

The specific level of low credit rating is that the bonds in question are rated below "investment grade" by the biggest credit rating agencies, such as Fitch, Moody's and Standard's and Poors.

The high yield from these bonds reflects the very real risk that these bonds may go into default as the companies that have issued them may not be able to pay interest on them at all and may go bankrupt as a result.

High Yield Investments - Risks

High yield bonds are subject to several types of risks, including interest rate and credit risk.

When considering the amount of risk in investing in junk bonds, you should consider risk adjusted return.

In many cases, the rate of return on a portfolio of junk bonds is very comparable to risk adjusted return on investment grade bonds.

Due to the fact that some junk bond issuers do go into default, a greater proportion of their expected return comes from interest payments rather than principal, in comparison to investment grade bonds.

As a result, junk bonds are typically less sensitive to interest rate changes, allowing high-risk companies to more easily refinance its debt even if interest rates have increased.


Risk Disclosure and Terms of Use



From high yield investments page to Investments Guide index




Copyright © 2014-2025 www.Forex-Guide.net. All rights reserved