Transcription of Introduction - Leveraged Commentary & Data
{{id}} {{{paragraph}}}
Example: dental hygienist
Introduction - Leveraged Commentary & Data
Copyright 2007 Standard & Poor s, a division of The McGraw-Hill Companies, Inc. Introduction high - yield bonds are debt securities issued by corporations with lower-than-investment grade ratings. The issuing companies usually are seeking money for growth (via M&A, perhaps), working capital or other cash flow purposes. The non-investment grade ratings lower than BBB- by Standard & Poor s, Baa3 by Moody s and BBB- by Fitch suggest a higher chance of an issuer default, wherein the company does not pay coupon interest or the principal amount due at maturity in a timely manner. Thus, these companies must offer a higher interest rate and in some cases additional investor-friendly structural features to compensate for bondholder risk, and to attract buying interest.
Copyright 2007 Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. Standard & Poor’s LCD High-Yield Bond Marker Primer Page 2 of 8
Loading..
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: