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Bonds 201: Junk Bonds

Introduction to Junk Bonds What Are Junk Bonds? Junk Bond Creditworthiness Junk Bonds and Risk Market Behavior of Junk Bonds Summary of Junk Bonds
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Introduction to Junk Bonds

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Junk bonds are bonds that have high risk -- and high return as well. This tutorial covers how junk bonds perform on the market.

What you will learn

  • What Are Junk Bonds?
  • Junk Bond Creditworthiness
  • Junk Bonds and Risk
  • Market Behavior of Junk Bonds

What do you know?

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Introduction to Junk Bonds

Are you a risk-taker? Do you like the thrill of the unknown? If so, junk bonds, also known as high-yield bonds, may be the investment for you. Junk bonds, at one time euphemistically called "junque" bonds because of their cache, offer higher interest rates because of their risk ratings. Some investors feel that the higher interest makes the risk worth taking. As a savvy investor, you should be aware of the risks and rewards of high-yield bonds and how they work as individual bonds and in bond mutual funds.