Junk Bond

Junk bonds are high-yield bonds which deliver high returns on investment, but have a high risk of loss. In buying a junk bond, the investor lends money to a company which has a very poor rating.

The Wall Street banker Michael Milken became known as the Junk Bond King due to his highly successful investments in junk bonds.

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Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.