Tag Archives: Portfolio Diversification

How to Invest in High-Yield Bonds: A Comprehensive Guide

Introduction to High-Yield Bonds High-yield bonds, also known as junk bonds, are fixed-income securities issued by companies with lower credit ratings compared to investment-grade bonds. These bonds offer higher yields to investors to compensate for the increased risk of default associated with the issuers. Characteristics of High-Yield Bonds Lower credit ratings: High-yield bonds are typically…