Terms Beginning With 'j'

Junk Bond

  • January 18, 2020
  • Team Kalkine

Bonds refer to fixed-income debt instruments issued by corporations and governments to raise capital. Do you know why would a bond be named a junk bond? It is because most brokers do not invest in them! Why? Because they are low-grade bonds, carry a higher risk of default and are issued by firms that are battling financially or are subject to high risk of default/ non-payment of their interest payments timely.

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