Junk Bond

Junk bonds are fixed income securities that carry low credit ratings. Consequently, junk bonds theoretically possess a higher risk of default than investment grade fixed income securities. The traditional delineation for qualification as a junk bond is a Standard & Poor’s credit rating of BB or lower, or a Moody’s Investors Service credit rating of Ba or lower.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.