In parts of the US, supper and dinner are used interchangeably to refer to the evening meal, but elsewhere dinner is the midday meal, akin to lunch, and supper, the evening meal.
What is a high-yield corporate bond? A high-yield corporate bond is a type of corporate bond that offers a higher rate of interest because of its higher risk of default. When companies with a greater estimated default risk issue bonds, they may be unable to obtain an investment-grade bond credit rating. conomic risk. If the economy falters, some investors are likely to try to sell their bonds. In what is known as a âflight to quality,â a number of investors may decide to replace their riskier high-yield bonds with safer ones, such as u.s. treasury bonds.
Three factors stand out as being the most important. Since corporate bonds are priced on their âyield spreadâ versus U.S. Treasuries â or in other words, the yield advantage they provide relative to government bonds â movements in government bond yields have a direct impact on the yields of corporate issues.