junk bond

简明释义

垃圾债券

英英释义

例句

1.During the financial crisis, many junk bonds lost significant value as companies struggled to stay afloat.

在金融危机期间，许多垃圾债券的价值大幅下降，因为公司努力维持生存。

2.Investors should be cautious when purchasing junk bonds because they carry a higher risk of default.

投资者在购买垃圾债券时应保持谨慎，因为它们具有更高的违约风险。

3.The company issued junk bonds to raise funds for its expansion, attracting both risk-seeking investors and skeptics.

该公司发行了垃圾债券以筹集扩张资金，吸引了寻求风险的投资者和持怀疑态度的人。

4.Some investors specialize in trading junk bonds to capitalize on their potential high returns.

一些投资者专门交易垃圾债券，以利用其潜在的高回报。

5.The yield on junk bonds is often much higher than that of investment-grade bonds to compensate for the increased risk.

由于风险增加，垃圾债券的收益率通常远高于投资级债券。

作文

In the world of finance, investment opportunities abound, but not all are created equal. One term that often comes up in discussions about risk and return is junk bond. A junk bond refers to a type of bond that is rated below investment grade by credit rating agencies. This means that they carry a higher risk of default compared to higher-rated bonds. Investors who purchase junk bonds are essentially betting on the ability of the issuing company to meet its debt obligations despite its lower creditworthiness.The allure of junk bonds lies in their potential for high returns. Because they are deemed riskier, they typically offer higher yields than more secure investments. For instance, a well-established company might issue bonds with a yield of 3%, while a less stable company’s junk bond could offer yields of 7% or even higher. This higher yield can be very attractive to investors looking for income, especially in a low-interest-rate environment.However, investing in junk bonds is not without its pitfalls. The primary risk associated with these bonds is the possibility of default. When a company struggles financially, it may fail to make interest payments or repay the principal amount when the bond matures. This can lead to significant losses for investors. Therefore, it is crucial for anyone considering investing in junk bonds to conduct thorough research and understand the financial health of the issuing company.Moreover, the market for junk bonds can be quite volatile. Economic downturns or shifts in investor sentiment can lead to sharp declines in the prices of these bonds. During such times, the perceived risk of holding junk bonds can increase dramatically, leading to a sell-off as investors seek safer assets. This volatility can result in substantial fluctuations in the value of an investor's portfolio.Despite these risks, many investors include junk bonds in their portfolios as a way to diversify their holdings. By allocating a portion of their investments to junk bonds, they can potentially enhance their overall returns. Additionally, some investors may choose to invest in mutual funds or exchange-traded funds (ETFs) that specialize in junk bonds, allowing them to spread their risk across a variety of issuers rather than concentrating it in a single bond.In conclusion, junk bonds represent a unique investment opportunity that comes with both potential rewards and significant risks. Understanding what junk bonds are, how they function, and the factors influencing their performance is essential for any investor interested in this asset class. While the promise of higher yields can be enticing, it is vital to approach junk bonds with caution and a well-informed strategy. As with any investment, balancing risk and reward is key to achieving long-term financial success.

在金融世界中，投资机会无处不在，但并非所有投资都是平等的。在关于风险和回报的讨论中，一个常提到的术语是垃圾债券。垃圾债券是指信用评级机构评定为投资级别以下的一种债券。这意味着它们相比于评级较高的债券，违约风险更高。购买垃圾债券的投资者实际上是在押注发行公司能够履行其债务义务，尽管其信用等级较低。垃圾债券的吸引力在于其潜在的高回报。由于被认为风险较大，它们通常提供比更安全的投资更高的收益率。例如，一家成熟公司的债券可能收益率为3%，而一家不太稳定公司的垃圾债券可能提供7%或更高的收益率。这种更高的收益率对寻求收入的投资者来说非常有吸引力，尤其是在低利率环境下。然而，投资垃圾债券并非没有陷阱。与这些债券相关的主要风险是违约的可能性。当一家公司财务状况不佳时，它可能无法支付利息或在债券到期时偿还本金。这可能导致投资者遭受重大损失。因此，任何考虑投资垃圾债券的人都必须进行彻底的研究，并了解发行公司的财务健康状况。此外，垃圾债券的市场可能相当波动。经济衰退或投资者情绪的变化可能导致这些债券价格急剧下跌。在这样的时期，持有垃圾债券的风险感知可能会急剧上升，导致投资者寻求更安全的资产而出现抛售。这种波动性可能导致投资者投资组合价值的大幅波动。尽管存在这些风险，许多投资者仍然将垃圾债券纳入他们的投资组合，以实现资产多样化。通过将部分投资分配给垃圾债券，他们可以潜在地提高整体回报。此外，一些投资者可能选择投资专注于垃圾债券的共同基金或交易所交易基金（ETF），使他们能够将风险分散到多种发行者身上，而不是集中在单一债券上。总之，垃圾债券代表了一种独特的投资机会，伴随着潜在的回报和显著的风险。理解垃圾债券是什么、如何运作以及影响其表现的因素，对于任何对这一资产类别感兴趣的投资者来说至关重要。尽管更高的收益承诺可能令人心动，但以谨慎和充分的信息策略来对待垃圾债券是至关重要的。与任何投资一样，平衡风险和回报是实现长期财务成功的关键。