What is another word for high risk bonds?
Pronunciation: [hˈa͡ɪ ɹˈɪsk bˈɒndz] (IPA) 
High risk bonds are also known as speculative bonds, junk bonds or non-investment grade bonds. These bonds are issued by companies with lower credit ratings and have a higher chance of defaulting, hence, investors who invest in these bonds are exposed to more risks. Speculative bonds are named so because they are seen as high-risk investments and pay higher returns to investors. Junk bonds refer to those designated as not suitable for investment purposes, while non-investment grade bonds are bonds labeled below investment grade by credit rating agencies. Whatever name is used for these bonds, the message is clear; investors must exercise caution and undertake thorough research before investing in them.
