Bonds with a credit rating below Ba1 / BB+ (inclusive) are higher risk bonds.
|Securities / Coupon / Maturity|
|SOFTBK 6.125 04/20/25||USD|
|FOSUNI 6.75 07/02/23||USD|
In addition to the general risks listed in investment grade bonds, there are other risks and complex features, including but not limited to the following:
- Higher credit risk: High-yield bonds are usually rated below investment grade or are not rated at all and the issuer's default risk involved is often higher.
- Subject to economic cycle changes: When there is downturn economy, the prices of high-yeild bonds tend to fall more than investment-grade bonds because of the increased risk of default.
- Multi-guaranteed / cross-guaranteed (non-single-credit-backed) bonds, in which these support providers (multiple guarantors) may not have significant operations or their support may be subordinated.