Читать книгу The Sterling Bonds and Fixed Income Handbook - Mark Glowrey - Страница 56

The expression junk bond is a colloquialism for a non-investment grade bond (i.e. a bond that is rated below BBB-). In truth the term junk is often a rather harsh description and the majority of these bonds will live a useful and uneventful life, servicing both coupons and redemption payments. Nevertheless, a risk of default is implied in the name and caution should be applied when dealing in these bonds. At the time of writing, examples of bonds with junk status in the sterling markets include GKN, Manchester United and Cable & Wireless. As might be expected, these types of bonds offer a higher yield (7-10%, compared to gilt yields of 2-3%) in order to compensate for the additional risk.