What are High Yield Bonds?

What are High Yield Bonds?

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.
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:

  • What high yield bonds are and how they are rated

  • The issuers and investors of high yield debt

  • 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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