Junk Bonds
These are bonds issued by companies that have the worst credit ratings and are the most likely to go bust. Often they are rapidly growing companies that are virtually unknown or crumbling companies doing their best to survive. To compensate investors for that risk, they pay the highest interest rates. Junk bonds are new to some parts of the world. They have been allowed in India only since 2007, for instance, and the market has yet to see any real appetite for them.
