QUICK DEFINITION
High-Yield Bond is a corporate bond rated below investment grade or otherwise carrying relatively high credit risk.
WHY IT MATTERS
Why High-Yield Bond matters in bond markets
High-yield spreads are sensitive to growth expectations, refinancing conditions and changes in risk appetite.
MARKET CONTEXT
How to think about it
Bond investors use high-yield bond as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is High-Yield Bond important for fixed-income investors?
← Back to the Bond Market Glossary Yes. High-yield spreads are sensitive to growth expectations, refinancing conditions and changes in risk appetite.