depends on the collateral supporting the bond.
It does not appear as quoted company on FT screens. Looks like junk bond to me, at 14% they would be buried in applications from their own country alone.
Junk bonds
High yield bond ( Junk bonds) funds own the debt of companies with less than stellar credit. The yield is higher to compensate the the increased risk that the fund and its investors are more likely to lose money as compared to a bond fund holding higher rated debt.
A junk bond is any bond with a BB or below rating. Also called high-yield bonds, they can become this way following one of two paths. In the days before Michael Milken, investment-grade bonds became junk because of various downturns in a company's fortune. Milken's great innovation, the one that made him so rich he could pay a billion dollars in fines to the federal government and still be rich, was creating bonds that started out life as high-yield paper.
A junk bond is one which is of very high risk. This type of bond will mean that a person may never get the money back which they invest into the bond itself.
Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.
Junk Bond Observatory was created in 1996.
"Junk" bonds pay a higher interest rate than high-quality bonds, in order to compensate for the risk of default. junk bonds can pay very high interest rates (gradpoint)
junk bond
junk bond
depends on the collateral supporting the bond.
Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.
It does not appear as quoted company on FT screens. Looks like junk bond to me, at 14% they would be buried in applications from their own country alone.
Purchasing one can be good for you depending on your financial situation. But if you don't have the funds to invest right now you may want to hold off until things pick up.
Junk bonds
Depends on the individual bond. Look for the date on the certificate.