Definition for : High-yield bonds
High-Yield bonds represent Subordinated debt, typically taking the form of five to ten-year bonds. These bonds are issued by companies in the process of being turned around or with a weak financial Base, in particular for LBOs. High Yields correspond to the level of Risk involved, making these bonds a very speculative Investment.
(See Chapters 21, 22 and 46 of the Vernimmen)
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