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High-Yield Bonds or Junk Bonds
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

Low grade, speculative bonds below investment grade, given S&P credit ratings of BB, B, CCC, or CC.  High-yield bonds are frequently used in corporate take-overs and leveraged buyouts.  These bonds have a long history in the financial market but emerged as an important type of debt in the 1980s.  The investment banking firm of Drexel Burnham Lambert was a leading underwriter and marketer of these bonds.  Defaults on high-yield bonds have been considerably higher than those on investment-grade bonds.  In 1986, the default rate was around 3% (the year of the LTV bankruptcy).  In 1985 and 1986, junk bonds issued amounted to $22.1 and $29.8 billion, respectively.  Insider trading scandals were associated with the issuance of junk bonds in the 1980s.

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