U.S. high yield market

The U.S. high yield market involves the trading of bonds issued by companies with lower credit ratings, often called "junk bonds." These bonds offer higher interest rates to compensate investors for the increased risk of default. Investors in this market are typically seeking higher returns than safer government or investment-grade corporate bonds. While providing potential for substantial gains, investing in high yield bonds also involves higher risk, including economic downturns that can impact companies’ ability to repay. The market plays a key role in financing riskier companies and supports wider investment opportunities in the financial ecosystem.