What does high-yield debt mean?
Definitions for high-yield debt
high-yield debt
This dictionary definitions page includes all the possible meanings, example usage and translations of the word high-yield debt.
Wikipedia
High-yield debt
In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events, but offer higher yields than investment-grade bonds in order to compensate for the increased risk.
Wikidata
High-yield debt
In finance, a high-yield bond is a bond that is rated below investment grade. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors.
Numerology
Chaldean Numerology
The numerical value of high-yield debt in Chaldean Numerology is: 7
Pythagorean Numerology
The numerical value of high-yield debt in Pythagorean Numerology is: 1
Examples of high-yield debt in a Sentence
For those companies that have pending maturities on bonds, there will be a more acute pressure on liquidity, in the E&P sector, the likelihood of refinancing high yield debt is very limited right now - investors in that market have been caught by surprise by the fall in oil prices and a lot of these bonds are trading at quite distressed levels.
The year's positive performance reflects contributions from nearly all of the strategies we employ; the top five winners include a constructive long equity position, a sovereign debt investment, high?yield debt investments in energy companies, an event?driven long position, and a short equity position in the pharmaceutical industry.
I would highlight that equity market valuations at this point generally are quite high, there are potential dangers there... We've also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of behavior.
But China's case is a bit different, if you look at the last six years, firms have leveraged up quite a lot, previously bank loans were at quite high interest rates. If China can relax monetary policy further, firms could have a great incentive to borrow at a lower rate, and use them to pay off high-yield debt. Merely doing so will alleviate firms' financial burdens and also the risk of default.
If there’s one metric that defines or reflects how much investors need to reach for yield, it is this negative real yield backdrop, the irony is that even buying high yield debt doesn’t help you beat inflation in Europe at the moment. It really reflects how much the ECB is keeping a lid on fixed income.
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"high-yield debt." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/high-yield+debt>.
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