Junk Bonds – A junk bond or a high-yield bond (non-investment-grade bond, speculative-grade bond, or) is a bond that is rated below investment grade at the time of purchase. These bonds have a higher risk of default or other adverse credit events but typically pay higher yields than better quality bonds in order to make them attractive to investors. Recently, the rating agencies have downgraded the bonds issued by the Greek government to CCC grade which is below the investment grade. Or in other words, the bonds issued by the Greek government are junk bonds.
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