High Yield

High yield generally refers to investments, like bonds, that offer higher returns compared to standard options. This often comes with increased risk, meaning they might be more likely to experience losses if the issuer struggles financially. For example, high-yield bonds are issued by companies or entities with lower credit ratings, so they must pay higher interest to attract investors. Investors seeking higher income may consider high yield options, but they should understand the potential for greater volatility and risk of default. Essentially, high yield investments balance the potential for increased profit with a higher chance of loss.