What is 'Junk Bond'? | Freetrade Dictionary

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

More terms

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Volatility

A measure of how much the prices of an asset or index vary over time.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Bond

Learn what a bond is

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Junk Bond