### Question
How is the "high-yield interest" defined?


### Answer
The term **high-yield interest** is defined in *26 U.S.C. § 860L* as follows -

> any interest which would be described in subparagraph (A) but for—


(I) failing to meet the requirements of one or more of clauses (i), (iv), or (v) thereof, or


(II) failing to meet the requirement of clause (ii) thereof but only if interest payments (or other similar amounts), if any, with respect to such interest consist of a specified portion of the interest payments on permitted assets and such portion does not vary during the period such interest is outstanding

#### Citation:
  - *26 U.S.C. § 860L*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART V-FINANCIAL ASSET SECURITIZATION INVESTMENT TRUSTS**

