Review:
High Yield Bonds
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
High-yield bonds, also known as 'junk bonds', are corporate bonds that offer higher yields but come with a higher risk of default compared to investment-grade bonds.
Key Features
- Higher yields
- Higher risk of default
- Lower credit ratings
Pros
- Potential for high returns
- Diversification in investment portfolio
Cons
- Higher risk of default
- Vulnerable to economic downturns