Homonym: High Yield (Agriculture)
"High Yield" refers to investments that offer a higher return compared to traditional options. This term is often associated with financial products like bonds, stocks, or mutual funds that provide greater income potential, usually at a higher risk. Investors seek high-yield opportunities to maximize their earnings, especially in low-interest-rate environments.
In the context of bonds, high-yield bonds, also known as "junk bonds," are issued by companies with lower credit ratings. These bonds offer higher interest rates to compensate for the increased risk of default. While they can provide attractive returns, investors should carefully assess the associated risks before investing.