High Yield Corporate Bonds
High-yield corporate bonds are sold by corporations that do not
have the same high credit rating as "investment grade" issuers.
Standard & Poor’s assigns credit ratings of BB or lower
to high-yield bonds.
Historically, high-yield bonds have provided investors with a
higher yield than investment grade corporate or government bonds.
This higher yield helps to compensate investors for the risk of
the issuing company not making its interest and principal payments.
Due to their higher risk of default, the interest-rate spread
between high-yield bonds and government bonds is wider than the
spread between investment grade corporate bonds and government
bonds.
To learn more about fixed-income investing, please continue by choosing one of the following
topics:
Also visit Bonds versus GICs to see how bonds and guaranteed investment
certificates (GICs) compare against one another.
To learn about individual RBC Funds and how they can address your
investment objectives, access our Fund
Updates. If you are ready to invest now, contact your advisor
or explore the options
available to invest with RBC Financial Group.
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