Receive potential higher yield with the risks undertaken by investing in these speculative grade bonds which typically carry a higher risk of default or other adverse credit events as compared to investment grade bonds.
Speculative Grade bonds (also known as High Yield bonds) are those rated BB+ and below by Standard & Poor’s (S&P) and Ba1 and below by Moody’s. These credit-rating agencies assess the credit risk of the issuer of the bonds, and assign them a credit rating based on information available at the time. Credit risk rating represents the agencies’ opinion on the possibility that the bond issuer may fail to pay what is owed. In some cases, the bonds may not even be rated by S&P or Moody’s.
These products are only recommended for investors with an appropriate risk appetite, financial situation, experience and objectives as they carry significant risks. Investors are exposed to the issuer's credit risk and market risk amongst other risks.
The product may not be suitable for all types of investors. For more information on the features, benefits and risks of this type of investment, please contact your Relationship Manager.