high-yield bond/high-yield fund

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A bond that is usually rated lower than BBB/Baa and considered speculative compared to an investment grade bond. Also called a junk bond. A high-yield mutual fund invests primarily in bonds with a credit rating of BB or lower. Because of the speculative nature of high-yield bonds, high-yield funds are subject to greater share price volatility and greater credit risk than other types of bond funds.

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