What are High Yield Bonds?

What are High Yield Bonds?

Tim Hall

30 years: Debt capital markets

High yield bonds offer investors an attractive rate of return. However, this comes with a risk. Tim provides a brief history of this type of volatile security, typical characteristics and information on default and recovery rates.

High yield bonds offer investors an attractive rate of return. However, this comes with a risk. Tim provides a brief history of this type of volatile security, typical characteristics and information on default and recovery rates.

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What are High Yield Bonds?

24 mins 9 secs

Overview

High yield bonds present investors with a unique opportunity to earn excellent returns and an alternative for issuers to access the debt capital markets. They are rated as “non-investment grade” and are influenced by markets, volatility and similar competitive securities.

Key learning objectives:

  • Define high-yield bonds

  • Understand how high-yield bonds are rated

  • Recognise the issuers and investors of high yield debt

  • Learn the rates, safety and characteristics of high yield bonds

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Summary
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Expert
Tim Hall

Tim Hall

Tim has nearly 30 years of experience in the international capital markets at major global institutions and has worked both on the buy-side and the sell-side. He has worked with numerous companies, banks and governments in developed and emerging markets on investment grade and high yield bond issues, from straight-forward to very complex acquisition/leveraged financings. Tim has also been on the board of a UK “challenger bank.” Tim has an MBA from the Wharton School, and is a CFA.

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