Junk bond: related pages

Leveraged buy-out (LBO)
An acquisition which is largely funded by debt; popular with private equity firms that often make large acquisitions with comparatively limited resources.
Credit risk
The risk that the cash flows due from a debt instrument will not be paid, or will be paid late.
Risk premium
The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.
Yield spread
The difference between the yield on a bond and the yield on a similar risk free debt instrument.
Debt covenant
An agreement between a company and its creditors that it should that the company should operate within certain limits, typically on debt levels, asset sales or gearing.
Copyright Graeme Pietersz © 2005-2019